New South Wales

New South Wales (abbreviated as NSW) is Australia's most populous state, located in the south-east of the country, north of Victoria and south of Queensland. It was founded in 1788 and originally comprised much of the Australian mainland, as well as New Zealand, Lord Howe Island and Norfolk Island. During the 19th century large areas were successively separated to form the British colonies of Tasmania, South Australia, Victoria, Queensland and New Zealand.

An inhabitant of New South Wales is referred to as a New South Welshman. New South Wales' largest city and capital is Sydney.

It is not clear whether New South Wales refers to the area being named after South Wales, or a New Wales in the Southern Hemisphere.1

In the journal covering his survey of the eastern coast of the Australian continent, the then Lt. James Cook (later Captain James Cook) first named the east coast of Australia "New Wales", which he later corrected in his journal to "New South Wales".

 (Information from Wikipedia)

http://en.wikipedia.org/wiki/New_South_Wales