Hobart (UK: ) is the capital and most populous city of the Australian island state of Tasmania. Founded in 1803 as a penal colony, Hobart is Australia's second oldest capital city after Sydney, New South Wales. The city is located in the state's south-east on the estuary of the Derwent River, making it the most southern of Australia's capital cities and its harbour forms the second-deepest natural port in the world.