In 1842 the Moreton Bay Penal Settlement was closed and the settlement declared open for free settlers. In 1859 Queensland was proclaimed a colony separate from New South Wales and Brisbane was proclaimed a municipality. From the 1860s immigration to Brisbane flourished as policies to assist immigrants were implemented. This influx hastened the development of the inner-city suburbs and was followed by a boom in migration in the 1880s.

In 1875 the first rail line in Brisbane connected central Brisbane to Indooroopilly. Suburban services increased to open up areas and provide the basis of Brisbane's development through the spreading branches of the railway lines. Tramways, buses, and ferries catered to formerly unmet needs in the suburbs, with the promise of imminent tram services acting as a catalyst for the development of some suburban estates.

Until recent times Brisbane has been subject to major flooding. One of the most devastating of these floods occurred in 1893, coinciding with an economic depression that lasted until 1886.

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