The Australian Capital Territory came into being on 1st January 1911 and was, as the name suggests, the area reserved for the new national capital, Canberra. The Commonwealth of Australia had been formed on 1st January 1901 and since then Melbourne had played the role of temporary capital. Now a new capital was to be built on this land given by New South Wales for that purpose.
The Australian Capital Territory comes under the direct jurisdiction of the Commonwealth (Federal) Government of Australia. Administratively, therefore, it is independent. Geographically, though, it is completely surrounded by New South Wales, on which state it tends to rely for some of its services.
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The Australian Capital Territory occupies an area of 2,360 square kilometres and consists of Canberra and its suburbs, together with some surrounding countryside. That is all. It has, therefore, the distinction of being both the smallest and the most densely populated of the Australian states and territories. It even spills over into New South Wales.
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