Melbourne was founded in 1835, during the reign of King William IV, with the arrival of the schooner Enterprize near the present site of the Queen's Wharf, as a barely legal, speculative settlement that broke away from New South Wales. Unlike other Australian capital cities, Melbourne did not originate under official auspices, instead forming through the foresight of settlers from Tasmania.

Having been a province of New South Wales from its establishment in 1835, affairs of the settlement had been administered by the Parliament of New South Wales. With the growth of the settlement there had been an increasing demand by the inhabitants for greater autonomy over their own affairs. On 12 August 1842, Melbourne was incorporated as a "town" by Act 6 Victoria No. 7 of the Governor and Legislative Council of New South Wales.

Melbourne is the second most populous city in Australia, with a metropolitan area population of approximately 3.8 million (2007 estimate). Located around Port Phillip Bay in Australia's south-east, Melbourne is the state capital of Victoria. Melbourne's demonym is Melburnian. Melbourne is a major centre of commerce, industry and cultural activity. The city is often referred to as Australia's 'sporting and cultural capital' and it is home to many of the nation's most significant cultural and sporting events and institutions. It has been recognised as a gamma world city by the Loughborough University group's 1999 inventory. Melbourne is notable for its mix of Victorian and contemporary architecture, its extensive tram network and Victorian parks and gardens, as well as its diverse, multicultural society. It was the host city of the 1956 Summer Olympics and the 2006 Commonwealth Games. Politically, it was host to the 1981 Commonwealth Heads of Government Meeting and the 2006 G20 summit.

Melbourne served as the federal seat of government from the time of the new nation's federation in 1901, until Federal Parliament moved to the purpose-built capital, Canberra, in 1927.