Parts of NSW with strong geographical advantages for a city that never took off
Here's a look at parts of NSW with strong geographical advantages for a city that never took off — places with natural advantages (harbours, rivers, fertile land, transport corridors, resources) that, for historical, political, or economic reasons, didn't become major cities. It's a mix of "geographic logic" and "path dependence" stories.
1. Jervis Bay / Huskisson area (South Coast)
Geographical advantages: a large, deep, sheltered natural harbour — one of the best on the east coast — with access to the sea and fertile hinterland.
Why it didn't take off: proximity to Sydney and other nearby ports (Port Kembla, Newcastle - it became a naval base/territory, not a city), poor road/rail links historically, and federal land ownership (Jervis Bay Territory) limited private development. It's a naval/tourism area, not a city.
What might have been: a major port/city on a superb harbour — it became a navy base and jurisdictional oddity instead.
2. Twofold Bay / Eden (South Coast)
Geographical advantages: a deep natural harbour (third-deepest in the southern hemisphere) — a genuine port site, with whaling/fishing and timber hinterland.
Why it didn't take off: isolated, no rail connection historically, Sydney/Melbourne dominance, and small hinterland population. It remained a whaling/fishing/timber town, not a regional city. While it is located on the Princes Highway, this is a less direct route from Sydney to Melbourne than the Hume Highway that runs inland.
What might have been: a major southern port — it lost out to Melbourne and Sydney.
3. Port Stephens / Nelson Bay area
Geographical advantages: a large natural harbour, sheltered waters, and coastal access.
Why it didn't take off: close to Newcastle (which also has strong geographical advantages and captured the port/industrial role), limited hinterland, and tourism/lifestyle development instead. It's a tourist/residential area, not a city.
4. Batemans Bay / Moruya (South Coast)
Geographical advantages: Located at the intersection of a river and a bay, coastal access, timber and dairy hinterland.
Why it didn't take off: Sydney's dominance, lack of rail, and seasonal tourism — it became a retirement/holiday area, not an industrial/port city.
5. Yamba ( North Coast)
I visited Yamba in November 2026. Now fast growing as a rural lifestyle town, it also has very strong geographical advantages.
The geographical advantages
Excellent natural harbour: the Clarence River mouth — a large, sheltered estuary with deep water and ocean access, one of the best natural port sites on the NSW north coast.
Strategic position: at the river mouth, with a fertile hinterland (the Clarence Valley — sugar, dairy, timber) and coastal access.
Sheltered anchorage: the Yamba/Iluka river mouth offers a genuine port/anchorage — historically used for shipping timber, sugar, and goods.
Raised land near the river mouth provides protection from flooding.
Climate: subtropical, good rainfall — productive hinterland.
Why it didn't become a city
Grafton won the hinterland role: the Clarence River port function went to Grafton (head of navigation, river port) — Yamba/Iluka were the river-mouth outposts, not the administrative centre.
Rail routing: the North Coast railway went through Grafton (and Coffs Harbour), bypassing Yamba — no rail link, limiting industrial/port growth.
Coffs Harbour's rise: While Coffs Harbour has less strong geographical advantages, an artificial harbour was created there and it was located as a stop on the main road and rail line moving north. It became the regional centre of the mid-north coast, capturing the port/retail/services role.
Isolation and small hinterland: the lower Clarence had a small population, and the Pacific Highway bypassed Yamba (until the Yamba interchange) — it remained a fishing/tourism village.
Flooding/terrain: parts of the lower Clarence are flood-prone; the town site is constrained.
Path dependence: once Grafton and Coffs Harbour took the roles, Yamba's geographic advantage was stranded — it became a holiday/fishing town, not a city.
What Yamba became instead
Tourism/lifestyle town: famous for beaches (Main, Pippi, Turners), surf, the Clarence River, and holiday appeal — now a popular sea-change destination with strong property demand.
Fishing/prawn industry: historically a fishing port (prawns, trawlers) — a real industry, but not a city-maker.
Retirement/sea-change growth: population has grown strongly in recent decades — lifestyle migration, not industrial/port development.
Summary
Why are all of these sites east of the Great Dividing Range? West of the Great Dividing Range are a lack of navigable rivers, often less fertile land and in many cases constraints on water supply.
About the author
David Carey is a town planning consultant with over 20 years of experience working on a number of development projects. This blog writes about planning, geography, transport, energy and related issues. You can learn more about David here.
Photos by David Carey and Google Maps
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