Sydney, Nova Scotia, Canada, a community on Cape Breton Island. It lies on Sydney Harbor on the northeastern coast of the island. Sydney is a port and industrial center in a major coal mining area and has one of Canada's largest iron and steel mills. Other industries include shipbuilding, metal fabricating, woodworking, and chemical manufacturing. Sydney was founded in 1785 by United Empire Loyalists and was the capital of Cape Breton province until it merged with Nova Scotia in 1820. In 1995, Sydney merged with seven neighboring municipalities to form the Cape Breton Regional Municipality.