The principal town in the territory, and the seat of government (though an attempt has been unsuccessfully made to transfer this to Jesselton on the west coast), is Sandakan, situated just inside the mouth of the Sarwaka inlet.
The remainder which call for separate mention are Lahat Datu on Darvel Bay on the east coast; Kudat on Marudu Bay and Jesselton on Gaya Bay on the west coast.
A railway of indifferent construction runs along the west coast from Jesselton to Weston on Brunei Bay, with a branch along the banks of the Padas to Tenom above the rapids.
Telegraphic communication 'between Mempakul and Kudat, via Jesselton, has also been established and is more regularly and successfully maintained.
A German firm runs vessels at approximately bi-monthly intervals from Singapore to Labuan and thence to Sandakan, calling in on occasion at Jesselton and Kudat en route.