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New South Wales is one of Australia's south-eastern states, lying to the east of South Australia, to the south of Queensland and to the north of Victoria. With a population of 6.7 million, it is the country's most populous state. As the core territory of the first British colony on the Australian continent which was gradually made smaller as the other states and territories formed, New South Wales is home to the country's oldest and largest city, the state capital of Sydney. New South Wales also encloses the Australian Capital Territory, the location of the Australian national capital of Canberra, in its south-east. Lord Howe Island, a subtropical island 550km east of the mainland, is also part of the state.