He resolved, therefore, to examine Port Jackson, a bay mentioned by Captain Cook as immediately to the north of this.

There he hoped to find, not only a better harbour, but a fitter place for the establishment of his new government.

But that no time might be lost, in case of a disappointment in these particulars, the ground near Point Sutherland was ordered immediately to be cleared, and preparations to be made for landing, under the direction of the Lieutenant Governor.
These arrangements having been settled, Governor Phillip prepared to proceed to the examination of Port Jackson: and as the time of his absence, had he gone in the Supply, must have been very uncertain, he went round with three boats; taking with him Captain Hunter and several other officers, that by examining several parts of the harbour at once the greater dispatch might be made.
22d January, 1788.
On the 22d of January they set out upon this expedition, and early in the afternoon arrived at Port Jackson, which is distant about three leagues.

Here all regret arising from the former disappointments was at once obliterated; and Governor Phillip had the satisfaction to find one of the finest harbours in the world, in which a thousand sail of the line might ride in perfect security.
The different coves of this harbour were examined with all possible expedition, and the preference was given to one which had the finest spring of water, and in which ships can anchor so close to the shore, that at a very small expence quays may be constructed at which the largest vessels may unload.

This cove is about half a mile in length, and a quarter of a mile across at the entrance.