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Coordinates 37°0'S, 144°0'E After the founding of the colony of New South Wales in 1788, the continent was divided into an eastern half - named New South Wales, and a western half, named New Holland, but under the administration of the colonial government in Sydney. Victoria's first settlement was at Portland, on the west coast of what is now Victoria. Melbourne was founded in 1835 by John Batman. From settlement the region around Melbourne was known as the Port Phillip District, and this gained some administrative status prior to separation from New South Wales and declaration as the Colony of Victoria in 1851. In 1851 gold was discovered near Ballarat, and subsequently at Bendigo. Later discoveries occurred at many sites across Victoria. This triggered one of the largest gold rushes the world has ever seen. The colony grew rapidly in both population and economic power. In ten years the population of Victoria increased sevenfold from 76,000 to 540,000. All sorts of gold records were produced including the "richest shallow alluvial goldfield in the world" and the largest gold nugget. Victoria produced in the decade 1851-1860 20 million ounces of gold, one third of the world's output[citation needed].
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