Amsterdam is the capital and most populous municipality of the Netherlands. Its status as the capital is mandated by the Constitution of the Netherlands, although it is not the seat of the government, which is The Hague. Amsterdam has a population of 851,373 within the city proper, 1,351,587 in the urban area, and 2,410,960 in the Amsterdam metropolitan area. The city is located in the province of North Holland in the west of the country but is not its capital, which is Haarlem. The metropolitan area comprises much of the northern part of the Randstad, one of the larger conurbations in Europe, with a population of approximately 7 million.
Amsterdam's name derives from Amstelredamme, indicative of the city's origin around a dam in the river Amstel. Originating as a small fishing village in the late 12th century, Amsterdam became one of the most important ports in the world during the Dutch Golden Age, a result of its innovative developments in trade. During that time, the city was the leading centre for finance and diamonds. In the 19th and 20th centuries the city expanded, and many new neighborhoods and suburbs were planned and built.