This image is from the City of Sydney's Foundations for a City: Building Sydney Town Hall exhibition http://www.cityofsydney.nsw.gov.au/history/foundations

City of Sydney
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York Street, 1842

John Rae’s sketch of York Street in 1842, looking south from midway between Market and Druitt Streets. The brick wall enclosing the Old Burial Ground can just be made out at the end of York Street, and the temporary St Andrews church. The Old Burial Ground was the Council’s preferred option for a Town Hall site. It was first suggested to the government in 1843. The proposal met with the Governor’s approval, but was blocked by the Legislative Council which doubted that the Governor had the power to grant ‘a public and sacred site’ for secular purposes. Governor Gipps proposed introducing a bill to clarify the situation, but after receiving a petition from the Bishop objecting to the proposed use, the idea was deferred. The Council also considered the George Street Market and Police Office site (shown to the left in the drawing) as a possible location. Edward Bell the City Surveyor drew a ground plan of the site in 1865 (City of Sydney, Engineers Plans, S4-46/3) but the government wouldn’t agree to this site either.

(image: DGV* Sp.Coll/Rae/2, Dixson Galleries, State Library of New South Wales)