The layout of the inner suburbs on a largely one-mile grid pattern, cut through by wide radial boulevards, and string of gardens surrounding the central city was largely established in the 1850s and 1860s. These areas were rapidly filled from the mid 1850s by the ubiquitous terrace house, as well as detached houses and some grand mansions in large grounds, while some of the major roads developed as shopping streets. Melbourne quickly became a major finance centre, home to several banks, the Royal Mint, and Australia's first stock exchange in 1861. In 1855 the Melbourne Cricket Club secured possession of its now famous ground, the MCG. Members of the Melbourne Football Club codified Australian football in 1859, and Yarra rowing clubs and "regattas" became popular about the same time. In 1861 the Melbourne Cup was first run. In 1864 Melbourne acquired its first public monument—the Burke and Wills statue.

In what two decades was the layout of Melbourne's inner suburbs established?