The SMH did a story on how competing governments might want a new Gtld.
AusRegistry, the organisation that is managing applications for the new domains for this country, said the NSW Premier's Office has "confirmed strong interest" in buying the .sydney domain.
"It is possible that two cities with the same name may apply for the same name space, such as Sydney Australia and Sydney Nova Scotia applying for .sydney," AusRegistry chief executive Adrian Kinderis said.
"If this occurs, ICANN has stated in the draft Applicant Guidebook that the applications will be suspended pending resolution by the applicants.
"This could involve a mediation between the two governments on who should operate the .sydney top-level domain or there may be an agreement struck for the two cities to share the name space."