Launceston, city and port in northern Tasmania, Australia, at the confluence of the North Esk and South Esk rivers and the highest navigable point of the Tamar River. Launceston is a port of entry and Tasmania's second-largest city after Hobart, the capital. It produces Australia's finest wool and has the country's oldest woollen mill, still in use on its original site. It is also at the centre of a rich dairy farming region. The principal manufactured products of Launceston are textiles (especially woollens) and brassware; other industries include engineering and sawmilling. One of the world's first hydroelectric stations, opened in 1895, is found here at Cataract Gorge. Population 98,200 (1999 estimate).