Victoria (abbreviated as Vic.) is a state in the south-east of Australia. Victoria is Australia's most densely populated state and its second-most populous state overall. Most of its population is concentrated in the area surrounding Port Phillip Bay, which includes the metropolitan area of its capital and largest city, Melbourne, which is Australia's second-largest city. Geographically the smallest state on the Australian mainland, Victoria is bordered by Bass Strait and Tasmania to the south, New South Wales to the north, the Tasman Sea to the east, and South Australia to the west. Prior to European settlement, the area now constituting Victoria was inhabited by a large number of Aboriginal peoples, collectively known as the Koori. With Great Britain having claimed the entire Australian continent east of the 135th meridian east in 1788, Victoria was included in the wider colony of New South Wales.