In the 1790s, Surry Hills received its first land grants. Major Joseph Foveaux was granted 0.42 km2 (105 acres). The Surrey Hills in Surrey, England, inspired the name of his property, Surry Hills Farm. In his honor, Foveaux Street was named. Commissary John Palmer was granted 90 acres (360,000 m2). Palmer also purchased Foveaux’s farm in 1800, and he named the property George Farm.

The boundaries of the Sydney Cove colony were drawn in 1792, extending from the head of Woolloomooloo Bay to the head of Cockle Bay. The area west of the line, which comprised the modern-day Surry Hills, was given to free settlers and military officers since it was deemed appropriate for cultivation.