Located 3 kilometres (1.9 mi) east of the Sydney central business district, Paddington lies across two local government areas.

With a high sandstone ridge, eroded by streams leading to a marshy rush-filled cove too shallow for ships, the area was ignored by the newcomers, except for collecting rushes for thatch.

[5] On a path used by local Aboriginal people, a road of some form was built by Governor Hunter to South Head as early as 1803.

[6] The first land grant in the Paddington area, of 100 acres (40.4 hectares), was made to Robert Cooper, James Underwood, and Francis Ewen Forbes by Governor Brisbane in 1823, allowing them to commence work on the Sydney distillery at the eastern end of Glenmore Road.

Developers were disparaging about densely populated areas like Paddington, describing them as unhealthy, and promoting sanitised garden suburbs such as Haberfield.

[8] The post-war County of Cumberland planning scheme for metropolitan Sydney slated Paddington as a slum ripe for total redevelopment.

[9] However, with the newly arrived migrants from Europe finding Paddington affordable and a convenient place to live, slum clearance faded from the political agenda.

[8] From 1960 many professional people, many who may have returned from living abroad, recognised Paddington's potential, particularly the suburb's close proximity to the CBD.

Its unique qualities may be attributed to its close proximity to the city, the topography of its harbour location, the process of development and subdivision of early land grants, and the short period in the late 19thC in which it was largely built out.

The distinctly Australian 'terrace' evolved from earlier Georgian and Regency models to form an exceptionally cohesive dormitory suburb.

The heritage conservation status of Paddington, its streets and houses, its rooms and details is recognised as being of National and State significance.

[11] Source: The Paddington SocietyThe aforementioned preservation of prominent Victorian architecture has drawn comparisons to London.

While there is a range of speciality shops and cafes, it is the plethora of clothing boutiques that has put Oxford Street on the tourist map.

Bookstores and cinema are located at the Darlinghurst end, while pop-up shops and personal services, hair, nails and massage, are becoming more prevalent closer to Woollahra.

With AM and PM bus lanes in operation on week days along Oxford Street, lack of parking is an issue for retailers, as are the high rents.

Since around 2000, low-rise retail/office developments, such on the former site of the Royal Hospital for Women, have complemented the 19th century scale of Oxford Street, unlike the bulky multi-storey Telstra overseas communications building that opened in 1960.

The market was established to persuade local craftspeople, designers of fashion, artists and jewellery makers to display and sell their wares.

As well as providing for the day-to-day needs for residents, Five Ways offers a wide range of eateries with al fresco dining.

In the leafy back streets the numerous hotels are matched by the proliferation of galleries, interior design, antique dealers and restaurants.

The sandstone buildings were designed by Lieutenant-Colonel George Barney, who also built Fort Denison and reconstructed Circular Quay.

Victoria Barracks, including the museum, is open to visitors on Thursdays from 10:00 a.m. to 1.00 p.m.[15] The Sydney Cricket Ground (SCG) can be accessed from Moore Park Road on Paddington's southern border.

The oval has a long history with the Australian Football East Sydney club, as well as with cricket and local athletics.

A series of walking trails through a dense bushland gully connect to surrounding streets and lead to the Paddington Bowling Club and Trumper Park Tennis Centre.

[30] The 'Victorian' suburb of Paddington grew into its present form largely during a 30-year boom that began in the mid-1870s, particularly with developments in public transport, initially with horse-drawn buses which travelled to the city and back from a terminus at Glenmore Road, and then with the introduction of steam trams, going through to Bondi in 1884.

Also during the first half of the twentieth century, and reflecting a concern with healthy urban living, terraced housing in Australia fell into disfavour, and the inner-city areas came to be considered 'slums'.

[32] Despite this, the area maintains a high degree of cultural diversity, with residents from various backgrounds including England (8.0%), New Zealand (3.5%), the US (2.1%), South Africa (1.2%), and France (0.9%).