Capital city of Victoria, at the mouth of the Yarra River, on the N end of Port Philip Bay. Founded in 1835 by settlers from Tasmania, in 1837 it was named for Lord Melbourne, the British prime minister. It was at the center of the gold rush of the 1850s. From 1901 to 1927 it was the temporary capital of Australia and the seat of the federal government. In 1956 the city hosted the summer Olympic Games. The economy was depressed in the 1980s, but has since rebounded due to increased immigration and business development.