Located at the mouth of the Yarra River, Melbourne was founded by free settlers in 1835, 47 years after the first European settlement in Australia. Transformed rapidly into a major metropolis by the Victorian gold rush in the 1850s, Melbourne became Australia's largest and most important city, and by 1865 was the second largest city in the British Empire. Today, Melbourne is a major center of commerce, industry and cultural activity, and is consistently ranked as one of the most livable cities in the world.