The first settlement began in 1803 as a penal colony at Risdon Cove on the eastern shores of the Derwent River, amid British concerns over the presence of French explorers. In 1804 it was moved to a better location at the present site of Hobart at Sullivans Cove. The city, initially known as Hobart Town or Hobarton, was named after Lord Hobart, the Colonial Secretary.
The area's indigenous inhabitants were members of the semi-nomadic Mouheneener tribe. Violent conflict with the European settlers, and the effects of diseases brought by them, completely destroyed the aboriginal population, which was rapidly replaced by free settlers and the convict population. Charles Darwin visited Hobart Town in February 1836 as part of the Beagle expedition. He writes of Hobart and the Derwent estuary in his Voyage of the Beagle:
...The lower parts of the hills which skirt the bay are cleared; and the bright yellow fields of corn, and dark green ones of potatoes, appear very luxuriant... I was chiefly struck with the comparative fewness of the large houses, either built or building. Hobart Town, from the census of 1835, contained 13,826 inhabitants, and the whole of Tasmania 36,505.
But since the Derwent River was one of Australia's finest deep water ports and was the centre of the Southern Ocean whaling and the sealing trade, it rapidly grew into a major port, with allied industries such as shipbuilding. Hobart Town became a city on 21 August 1842, and was renamed Hobart from the beginning of 1881