Why is Canberra the capital of Australia?

The site of Canberra was selected for the location of the nation's capital in 1908 as a compromise between rivals Sydney and Melbourne, Australia's two largest cities. With a population of 381,488 it is Australia largest inland city. 
Before European settlement, the area in which Canberra would eventually be constructed was seasonally inhabited by Indigenous Australians. European exploration and settlement started in the Canberra area as early as the 1820s.European population in the Canberra area continued to grow slowly throughout the 19th century.