The City of Canterbury takes its name from the suburb but its administrative centre is located in the adjacent suburb of Campsie, which is also a large commercial centre. Canterbury is surrounded by Ashbury to the north, Campsie to the west, Earlwood to the south, and Hurlstone Park to the east.
In 1793, the area's first land grant was made to the Chaplain of the First Fleet, the Rev. Richard Johnson. He gave the 100 acre (0.4 km²) grant, located one mile (1.6 km) north of the river, the name Canterbury Vale. The grant was passed onto William Cox who on becoming bankrupt, sold the land for 525 pounds to Robert Campbell in May 1803. By 1834 the Campbell Estate grew to 1,242 acres (5 km²). In 1865, daughter Sarah Jeffrey subdivided the land into allotments each containing several acres. The first major industry was established in 1841 with the building of the Australian Sugar Company's sugar mill by the Cooks River to produce molasses and spirits. Other industries and trades such as boiling down works and tanneries later developed along the river. The Methodists built the first church in the suburb, with services beginning in 1841. The railway line was completed in 1895, encouraging suburban development and leading to the area becoming heavily populated. This was too late for the Sugar Mill which ceased production in September 1854, but was encouraging for horse racing which informally began in 1871.
After much petitioning of the State Government by local residents, the Municipality of Canterbury was proclaimed on 17th March 1879. A Town Hall was opened in 1889, however over time Campsie became a more important centre and the city administration left Canterbury in 1962.
Canterbury railway station is located on the Bankstown line of the CityRail network. The line, which crosses the Cooks River, was opened in 1895 and electrified in 1926. Two additional tracks were laid for goods traffic through to Port Botany. The station is the terminus for several Sydney bus routes.
Pedestrians and cyclists can cross the Cooks River at one of two dedicated footbridges making the riverside pleasant and accessible for recreational users. The popular Cooks River bicycle track follows the river along its northern bank connecting the suburb with Homebush to the north-west and Botany Bay to the east. The river itself is navigatable only during high tide and used occasionally by canoeists. This contrasts with the early history of Canterbury when the river was used to import large quantities of sugarcane.
For New South Wales state elections, the suburb is in the Electoral District of Canterbury. The district includes surrounding suburbs of Campsie, Earlwood, Hurlstone Park, Croydon Park, western Dulwich Hill, eastern Belfield and northern Turrella.
For federal elections, Canterbury is in the electoral division of Grayndler. In state and federal elections, Canterbury residents predominantly vote for the Australian Labor Party.