 The panorama on the Library punchbowl begins with a view of the eastern shore of Sydney Cove . In the foreground is an octagonal two @-@ storey , yellow , sandstone house ① , built by Governor Macquarie in 1812 for his favourite boatman and former water bailiff , Billy or William Blue . The drawing of this little house – now the site of the Sydney Opera House — is out of all proportion to its actual modest size . To the left of the house is a sandy beach where the Circular Quay ferry wharves now stand . Facing the beach is First Government House ② where the Museum of Sydney is now situated . 
