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Amsterdam (pronunciation (help·info)), the official
capital of the Netherlands, lies on the banks of two bodies of water, the IJ bay
and the Amstel river. Founded in the late 12th century as a small fishing
village on the banks of the Amstel, it is now the largest city in the country
and its financial and cultural centre. As of 2005, the population of the city
proper is 742,951[1]; the population of the greater Amsterdam area is
approximately 1.5 million.
Amsterdam has one of the largest historic city centres in Europe, dating largely
from the 17th century. At this time, a series of concentric, semi-circular
canals ("grachten") were dug around the old city centre. Along the canals houses
and warehouses were build. The canals still define Amsterdams layout and
appearance today. Many fine houses and mansions are situated along the canals.
Some of the narrow brick houses are gradually sinking because they are built on
wooden piles to cope with the marshy subsoil.
Although Amsterdam is officially designated as the capital of the Netherlands,
it has never been (save a brief period between 1808 and 1810), the seat of the
court, government, or parliament of the Netherlands, which are all located at
The Hague. Amsterdam is also not the capital of the province in which it is
located, North Holland, whose capital is located at Haarlem. See capital of the
Netherlands for more information.