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Melbourne is the capital and largest city of the state of Victoria, and the second largest city in Australia (after Sydney), with a population of 3.8 million in the Melbourne metropolitan area (June 2004) and 69,670 in the City of Melbourne (which covers only the central city area).
Melbourne has undergone a major urban 'revival', such that it is sometimes classed as being in a second tier of "world cities"; the GaWC study group in the UK ranks Melbourne, on the basis of relative availability of specialised "advanced services" as a "minor world city" comparable to cities such as Montreal, Osaka, and Prague.
Melbourne is often referred to as Australia's second city given its secondary ranking to Sydney in terms of population.