
It was founded by Col. Joseph Frederick Wallet DesBarres in 1785, and named in honour of Thomas Townshend, 1st Viscount Sydney (also the Home Secretary in the British cabinet at the time). Lord Sydney appointed Col. DesBarres governor of the new colony of Cape Breton Island. Col. DesBarres landed a group that consisted primarily of poor English citizens and disbanded soldiers. A group of Loyalists from the state of New York, fleeing the aftermath of the American Revolution, were added to the immigrants upon their arrival in the neighbouring colony of Nova Scotia. The site DesBarres chose for the ne
 w settlement was along  the Southwest Arm of Sydney Harbour, a drowned valley of the Sydney  River, which forms part of Spanish Bay. Between 1784-1820, Sydney  was the capital of the British colony of Cape Breton Island. The colony  was disbanded and merged with neighbouring Nova Scotia as part of the  British government's desire to develop the abundant coal fields  surrounding Sydney Harbour; the leases being held by the Duke of York. In  1826, the leases were transferred to the General Mining Association and  industrial development around Sydney began to take shape.
w settlement was along  the Southwest Arm of Sydney Harbour, a drowned valley of the Sydney  River, which forms part of Spanish Bay. Between 1784-1820, Sydney  was the capital of the British colony of Cape Breton Island. The colony  was disbanded and merged with neighbouring Nova Scotia as part of the  British government's desire to develop the abundant coal fields  surrounding Sydney Harbour; the leases being held by the Duke of York. In  1826, the leases were transferred to the General Mining Association and  industrial development around Sydney began to take shape.

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