Australian Capital Territory: A territory of Australia consisting of Canberra, the national capital and surrounding land. It lies geographically within NEW SOUTH WALES and was established by law in 1988.New South Wales: A state in southeastern Australia. Its capital is Sydney. It was discovered by Captain Cook in 1770 and first settled at Botany Bay by marines and convicts in 1788. It was named by Captain Cook who thought its coastline resembled that of South Wales. (From Webster's New Geographical Dictionary, 1988, p840 & Room, Brewer's Dictionary of Names, 1992, p377)Australia: The smallest continent and an independent country, comprising six states and two territories. Its capital is Canberra.