Temporary cyclone fences surround Sydney's best vantage points as the masses arrive with fold-up chairs, rugs, shopping bags and booze.
Excitement is in the air and the crowds are expecting a jaw-dropping start to 2012 with fireworks billed as the best in the world.
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"I didn't want to take any chances, so just stayed the night," said 26-year-old Brendan Mullen, who camped out overnight at Balmain to ensure a prime position.
"I reckon it'll be worth it."
Tourist Manuel Forgiarini said he planned to have the night of his life.
"I come from a small town in the north of Italy so we don't have these kinds of fireworks. It's usually just some small party with family," the 26-year-old said.
"I've always wanted to come here... We're just going to keep drinking until the police come and take our drinks away."
Security guards in yellow vests have spent the day checking bags at turnstiles blocking off the Opera House and Mrs Macquarie's Chair.
"I've never been here before," said software engineer Neda Hillyer, who moved to Australia from the US with her husband Sati Hillyer three months ago.
"We're pretty stoked. I've never celebrated New Year's Eve with 1.5 million people."
With her parents visiting from Los Angeles, Mrs Hillyer brought along a bottle of shiraz, unaware that organisers are not allowing spectators to bring in their own alcohol.
Mrs Macquarie's Chair, with a capacity of 20,000, is the biggest venue along the harbour foreshore, followed by the Tarpeian Precinct on the western side of The Domain, which can hold 6000.
Jennie, a software engineer from earthquake-damaged Christchurch in New Zealand, visited Circular Quay with her 14-year-old daughter in the early afternoon.
That probably in itself was the largest inspiration, given what's taken place all over the world, not only in Australia," he said.
"It really gave me inspiration, for want of a better word, to think about more optimistic things for the years to come."
Sydney Lord Mayor Clover Moore was optimistic the weather would be good.
"I'm absolutely confident," said Ms Moore, who will watch the fireworks from the Opera House forecourt.
"There's no forecast for wind at all. We don't think it's going to be raining when the fireworks go off."
Skies above Sydney are cloudy but are gradually clearing as crowds begin gathering along some of Sydney Harbour's best vantage points.
Hundreds of revellers have already staked their ground at the Botanical Gardens, as well as the Opera House and the Balmain foreshore.
Melbourne plans to burst into gold with a $400,000 fireworks display lasting 10 minutes.
Gold-themed images will also be projected on to St Paul's Cathedral, the State Library of Victoria and the National Gallery of Victoria, as part of the celebrations which harks back to the gold rush era.
Families can enjoy free entertainment at Yarra Park, Birrarung Marr and Alexandra Gardens and earlier fireworks at 9.30pm (AEDT) at Yarra Park and Docklands.
With Sydney's fireworks containing seven tonnes of explosives, Melbourne Lord Mayor Robert Doyle said, "If size matters, we're the biggest".
"The Harbour Bridge is beautiful, but when you see the gold that is the Melbourne moment this year, it will be absolutely spectacular," Mr Doyle said.
Crowds can travel home from the city on public transport for free from 6pm on New Year's Eve until 6am.
Hundreds of police will patrol the city and coastal hotspots including the Surf Coast, Mornington Peninsula and Phillip Island to crack down on drunken revellers.
An extra 150 paramedics will be on duty across the state, with an additional 16 ambulances in the CBD and St Kilda.
Excitement is in the air and the crowds are expecting a jaw-dropping start to 2012 with fireworks billed as the best in the world.
Advertisement: Story continues below
"I didn't want to take any chances, so just stayed the night," said 26-year-old Brendan Mullen, who camped out overnight at Balmain to ensure a prime position.
"I reckon it'll be worth it."
Tourist Manuel Forgiarini said he planned to have the night of his life.
"I come from a small town in the north of Italy so we don't have these kinds of fireworks. It's usually just some small party with family," the 26-year-old said.
"I've always wanted to come here... We're just going to keep drinking until the police come and take our drinks away."
Security guards in yellow vests have spent the day checking bags at turnstiles blocking off the Opera House and Mrs Macquarie's Chair.
"I've never been here before," said software engineer Neda Hillyer, who moved to Australia from the US with her husband Sati Hillyer three months ago.
"We're pretty stoked. I've never celebrated New Year's Eve with 1.5 million people."
With her parents visiting from Los Angeles, Mrs Hillyer brought along a bottle of shiraz, unaware that organisers are not allowing spectators to bring in their own alcohol.
Mrs Macquarie's Chair, with a capacity of 20,000, is the biggest venue along the harbour foreshore, followed by the Tarpeian Precinct on the western side of The Domain, which can hold 6000.
Jennie, a software engineer from earthquake-damaged Christchurch in New Zealand, visited Circular Quay with her 14-year-old daughter in the early afternoon.
That probably in itself was the largest inspiration, given what's taken place all over the world, not only in Australia," he said.
"It really gave me inspiration, for want of a better word, to think about more optimistic things for the years to come."
Sydney Lord Mayor Clover Moore was optimistic the weather would be good.
"I'm absolutely confident," said Ms Moore, who will watch the fireworks from the Opera House forecourt.
"There's no forecast for wind at all. We don't think it's going to be raining when the fireworks go off."
Skies above Sydney are cloudy but are gradually clearing as crowds begin gathering along some of Sydney Harbour's best vantage points.
Hundreds of revellers have already staked their ground at the Botanical Gardens, as well as the Opera House and the Balmain foreshore.
Melbourne plans to burst into gold with a $400,000 fireworks display lasting 10 minutes.
Gold-themed images will also be projected on to St Paul's Cathedral, the State Library of Victoria and the National Gallery of Victoria, as part of the celebrations which harks back to the gold rush era.
Families can enjoy free entertainment at Yarra Park, Birrarung Marr and Alexandra Gardens and earlier fireworks at 9.30pm (AEDT) at Yarra Park and Docklands.
With Sydney's fireworks containing seven tonnes of explosives, Melbourne Lord Mayor Robert Doyle said, "If size matters, we're the biggest".
"The Harbour Bridge is beautiful, but when you see the gold that is the Melbourne moment this year, it will be absolutely spectacular," Mr Doyle said.
Crowds can travel home from the city on public transport for free from 6pm on New Year's Eve until 6am.
Hundreds of police will patrol the city and coastal hotspots including the Surf Coast, Mornington Peninsula and Phillip Island to crack down on drunken revellers.
An extra 150 paramedics will be on duty across the state, with an additional 16 ambulances in the CBD and St Kilda.
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