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Sydney is in the local government area of 'Sydney'. The 'Sydney' local government area is classified as a 'City'.
The Sydney local government area includes around 21 cities, towns, villages and localities including Sydney (pop. about 3.5 million), Fort Denison, Mrs Macquarie's Chair, Kings Cross, Sydney Opera House, Martin Place, St James, Museum, Circular Quay, Central, Town Hall, Wynyard, Green Square, Darling Harbour, National Maritime Museum, Redfern, Pyrmont Bay Marina, Darling Point, Macdonaldtown and Erskineville.
A local government area (abbreviated as 'LGA') is an area controlled by a local government. Local government areas can provide a useful way to group statistical information.
If you're interested in Cities, Towns and Villages then you may also be interested in Suburbs/Regional Areas.