Australian Federal Territory, chiefly the site of Canberra (population 320,000), Australia's capital city, situated between its two largest and rival cities, Melbourne and Sydney. Apart from the city, there is a some agricultural land (sheep, dairy cattle, some vinyards and a very small area of crops), and a large area of national park, much of it mountainous and forested. The area and population is quite similar to the nation of Luxembourg but the pattern of settlement is very different.
When the constitution for the Commonwealth of Australia was being negotiated between the colonies, Melbourne and Sydney each demanded that they become the capital. As a compromise, it was agreed that the capital would initially be Melbourne, until a new capital city could be built. This new capital city would be located in territory taken from New South Wales, and be 200 statute miles or more from Sydney. The present site was chosen and named Canberra in (1910?); the federal government officially moved there from Melbourne in 1926. At first most public service administration continued to be done in Melbourne, but the various departments were gradually moved to Canberra over the years.
The Australian Capital Territory is wholly surrounded by New South Wales. For administrative purposes, the Australian Capital Territory also incorporates the Jervis Bay Territory (being a naval base on the NSW near the town of Jervis Bay), and the uninhabited external territories.
really 200 miles? I think it is not actually that far. Perhaps the requirement was "at least 100 statute miles" ?