Sydney Airport (code YSSY, aka SYD) is located in Mascot, one of the southern suburbs of Sydney, as can be seen here.
It started life around 1911 (albeit informally; the first commercial flight from what would become the airport didn't occur until 1919), having previously been a paddock for livestock. Back then, there were no obstructions on any of the 4 sides of the land. Things are a bit different to that now.
In 1921, the Commonwealth government purchased some land around Mascot to create a public airfield, and acquired the previous informal airfield's land 2 years later. Commercial operation as we now know it (well, sort of) began in 1924. In 1936, it was renamed Kingsford Smith Airport in honour of pioneer aviator Sir Charles Kingsford Smith, who had died in an aviation accident the previous year.