Sydney the oldest, biggest, and most beautiful of all Australian cities, lies amid a seductive intermingling of land and sea. Glide along the glittering harbor on a ferry, see the white sails of the Opera House gleaming in the sunshine, and admire the graceful arch of the Harbour Bridge and it's hard to imagine this vibrant state capital was once a brutal convict colony. In 1788, it was at Sydney Cove where Captain Arthur Phillip, commander of the First Fleet, established the first British colony in Australia.