Dozens of Chinese and Olympic flags flew on the edge of Canberra's Lake Burley Griffin, where a rowing relay was put on after the set-off leg from the Conciliation Place.
The heart of Canberra's CBD came alive when the torch made its way through Civic. Workers, shippers and diners all took time out to cheer on the torchbearers as the relay convoy made its way along Northbourne Avenue.
"It's a shame for what happened in London and Paris. We are showing we can do better today. A large population from Chinese communities in Australia, especially in Sydney and Melbourne, come together to celebrate here, that's the Olympic spirit," said AOC media director Mike Tancred.
"Everything goes wonderful, the relay, the spectators and the celebrations. Over 500 journalists from around the world came to Canberra today. It's a great exposure for Australia, especially a great exposure for Canberra."
Ian Thorpe, Ron Clarke, Petria Thomas and Robert De Castella are renowned bearers among the 80 sports stars, community leaders and unsung heroes.
Thorpe, a prolific Olympic champion, was entitled to run the final leg and light the cauldron in Stage 88.
Thorpe competed in Sydney 2000 and Athens 2004, winning five gold, three silver and one bronze medals.
Ron Clarke competed in athletics in Tokyo 1964 and Mexico City 1968 and won one bronze medal. He broke 18 world records during his running career. Clarke lit the Olympic cauldron in Melbourne 1956.
Petria Thomas, a swimming Olympic champion, competed in Atlanta 1996, Sydney 2000 and Athens 2004, winning a total of three gold, four silver and one bronze medals.
Aaron Fleming, 24, is New Zealand's only torch bearer in the Olympic torch relay and he felt "hugely honored" at carrying the flame through Canberra.
Fleming overcame a serious lung ailment as a teenager to train and become a competitive ironman, raising thousands of dollars for charity in the process.
He won the right to carry the flame for New Zealand after a nationwide search last year.
"This is a magnificent day for us today to show that Australia can have a peaceful rally. Watching overseas protests, I felt shamed that they can behave like that," said Wellington Lee from the Victorian (state) Chinese Association.
Landmarks along the route are Reconciliation Place, Parliament House, Australian War Memorial, Commonwealth Park and Anzac Parade, Civic and Stage 88.
Canberra is the capital city of Australia. With a population of over 334,000, it is Australia's largest inland city. The city is located at the northern end of the Australian Capital Territory, 280 km (170 miles) south-west of Sydney, and 650 km (400 miles) north-east of Melbourne.
The site of Canberra was selected for the location of the nation's capital in 1908 as a compromise between age-old rivals Sydney and Melbourne, Australia's two largest cities. It is unusual among Australian cities, being an entirely purpose-built, planned city.
The city's design was heavily influenced by the garden city movement and incorporates significant areas of natural vegetation that have earned Canberra the title "bush capital".