 However, almost 18 years later, when Captain Arthur Phillip and the First Fleet arrived in early 1788 to establish an outpost and penal colony, they found that the bay and surrounds did not live up to the promising picture that had been painted.Instead, Phillip gave orders to relocate to a harbour a few kilometres to the north, which Cook had named Port Jackson but had not further explored.It was in this harbour, at a place Phillip named Sydney Cove, that the settlement of Sydney was established.