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At the northern tip of Sydney's central business district, between Bennelong Point and the Rocks, Circular Quay is home to parks and restaurants, ferry terminals and stations, walkways and shopping streets.

Originally, the waterfront was used for shipping, but over time has evolved into the transport and recreational centre of the city. It was once was once called the "Semicircular Quay" to more accurately reflect its shape, however the name was later shortened for convenience.

Circular Quay used to be the main terminus of most of the electric trams in the eastern part of Sydney. And the first tram, in 1861, travelled along the waterfront from the old Sydney railway station along Pitt Street was horse-drawn. For many years 27 regular tram routes ran from the Central Station down Castlereagh Street to Circular Quay.

Today, the Circular Quay is Sydney's main transport hub with the ferry, railway and bus stations. Incidentally, the local railway station is the only one in the city located above ground.

In addition, the waterfront is Sydney's largest venue for various festive events, thanks to its prime location between the Sydney Opera House and the Harbour Bridge. It's where fireworks are organised to celebrate Australia's Independence Day and New Year's Eve.

The Circular Quay is also home to the Museum of Contemporary Art and the City Library. In the autumn of 2006 it hosted Australia's largest open-air exhibition in Australia. Teddy Bears, each representing a UN member state and symbolising peace, freedom and friendship.