New South Wales (NSW) is the most populous state in Australia and is located between Victoria and Queensland on the south-eastern coast. The state was "discovered" by Captain James Cook in 1770, although the area was already inhabited by Aboriginal tribes. After the arrival of the First Fleet, New South Wales assumed its role as a penal colony, however, chaos and anarchy was frequent until Lachlan Macquarie reformed the settlement in 1809. Today, New South Wales is the home of one of Australia's most famous cities, Sydney. New South Wales also surrounds the ACT, which was built on land that was originally part of New South Wales. New South Wales is also famous for its sports, with several of the major rugby league clubs coming out of the state. Furthermore, the annual rugby-league 'all-star' match, State of Origin, it a tightly contested affair between Queensland and New South Wales. Take advantage of cheap car hire in Sydney or a cheap rental car in Byron Bay and use these destinations as a base for exploring New South Wales.