Victoria is a state located in the south-eastern corner of Australia. It is the smallest mainland state in area, but the most densely populated and urbanised. Victoria began in the 1830s as a farming community. The discovery of gold in 1851 transformed it into a leading industrial and commercial centre. Victoria is the second most populous Australian state, after New South Wales, with an estimated population of 5,205,200 as of June 2007 . Melbourne is Victoria's capital and largest city, with more than 70% of all Victorians living there.