By 1812 the turbulent colony of Van Diemens Land was to enjoy a new direction; its ports were freed from restriction and its superb pastoral lands were flooded with an increase of free settlers directly from the United Kingdom.

The 1820s and 1830s saw trade improve, with the woollen industry prospering. At the time, British capital and the cheap supply of readily available labour benefited the economy greatly. Schools were established, and churches of all denominations were encouraged to open their doors.

Locals on the island were not happy with the ongoing scheme of convict transportation, and finally, in 1853, the last convict ship arrived in Van Diemens Land. Three years later the first fully elected parliament appeared on the island; it comprised a house of assembly and a legislative council. It was this parliament which was responsible for changing the name of the island to Tasmania. This perhaps highlighted their eagerness to put the island's convict days behind them, and to create a new beginning.

Of course, the end of convict transportation also meant the cessation of Crown funding, which in turn created budgetary difficulties. This factor, along with the increasing attractiveness of Victoria with its gold finds, led to a slowing down in population growth. This was by no means the result of low birth rates, rather it was emigration which most impacted upon the population statistics at that time.

There was almost an air of despair and despondency, as development did not seem to be occurring at the desired rate. In the 1870s the tin deposit findings at Waratah helped to dispel some of this despair, instilling a sense of hope for the future.

In the 1880s roads and railways were built in an effort to improve communication and transport links. Much of this development placed a considerable burden on the already over-stretched finances within the public sector.

Towards the end of the nineteenth century, attention was focused on public health. It became clear that poor housing and associated poor sanitation was causing the spread of disease. To counter this, the drainage system around Hobart was improved, and a sewerage system was added.

In the sphere of education, schooling remained irregular because of the required participation of children in the seasonal farm work. By the early twentieth century, greater efforts were made to improve standards and increase attendance. In 1890 the first university began enrolments in Tasmania, again bolstering hope for the future.

All sorts of minerals were discovered - copper, gold, tin and silver. The west was particularly fortunate in this regard. Silver was discovered at Zeehan, and copper near Queenstown. These discoveries, together with the improved and expanded farming activity in the north and the woollen production of the midlands, helped to transform the economy considerably.

The physical geography of the central highlands and the amount of rain there, led to the development of hydro-electricity. Launceston was the first area in Tasmania to have its streets lit up by electricity in the 1890s.

The federation movement in Tasmania was thriving by the end of the nineteenth century. Some felt that Tasmania would in fact suffer because income from customs and tariffs would disappear with the arrival of a federation. Andrew Inglis Clark was one of the key members of the federation movement, who contributed greatly to the whole debate. Put to the people in a vote on two occasions, support for a union with the colonies was clearly evident.

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