The capital of Australia is Canberra. It was founded in 1913 as the seat of government for the new nation, following a long dispute over whether Sydney or Melbourne should be the national capital. A compromise was reached: the new capital would be built in New South Wales, so long as it was at least 100 mi (160 km) from Sydney. Canberra is located in the northern region of the Australian Capital Territory and is an entirely planned city.