Sydney Cove is a small bay on the southern shore of Sydney Harbour, one of several harbours in Port Jackson, on the coast of Sydney, New South Wales, Australia.
Sydney Cove was named after the British Home Secretary, The 1st Baron Sydney (who was later created The 1st Viscount Sydney in 1789). It was the site chosen by Captain Arthur Phillip, R.N., between 21 and 23 January 1788 for the British penal settlement which is now the city of Sydney, and where possession of New South Wales was formally declared on 26 January (now commemorated as Australia Day). Today, the exact site where the flag was planted is not apparent, as in its place is Circular Quay and buildings of the CBD.
Phillip's instructions were to establish the settlement at Botany Bay, a large bay (further south of Sydney Cove) down the coast. Botany Bay had been discovered by Lieutenant James Cook during his voyage of discovery in 1770, and was recommended by the eminent botanist Sir Joseph Banks, who had accompanied Cook, as a suitable site for a settlement. But Phillip discovered that Botany Bay offered neither a secure anchorage nor a reliable source of fresh water. Sydney Cove offered both of these, being serviced by a freshwater creek which was soon to be known as Tank Stream.
It must have been like entering paradise on that summer afternoon when the sea-won convoy passed through the dun and barren headlands into the untouched harbour - the water brilliantly blue, the shores high and wooded without being precipitous, a scattering of islands, sandy beaches, the trees shimmering under the sun.