In 1788, Captain Arthur Phillip, the inaugural governor of New South Wales, designated the cove that would become the site of the first British settlement as Sydney Cove. This name was chosen to honor Thomas Townshend, the 1st Viscount Sydney, who served as Home Secretary at the time. Prior to European settlement, the area was known as Warrane to the Aboriginal people, who have a deep connection to the land.

Initially, Phillip contemplated naming the settlement Albion, although this name was never officially adopted. By 1790, both Phillip and other officials had begun regularly referring to the township as Sydney. The settlement officially gained city status in 1842, marking a significant milestone in its development.

The Gadigal clan, part of the Eora Nation, are the traditional custodians of the land on which the British settlement was established. Their territory stretches along the southern shore of Port Jackson, from South Head to Darling Harbour, and they refer to it as Gadi (Cadi). The naming conventions among Aboriginal clans in the Sydney region often involve the suffix "-gal," which is added to a word representing their territory, a specific place within it, a food source, or a totem.

Greater Sydney encompasses the traditional lands of 28 known Aboriginal clans, highlighting the rich Indigenous heritage that pre-dates European colonization and continues to influence the region today.