Amsterdam is the capital, and largest city of the Netherlands, located in the south of the province North Holland. The name Amsterdam literally means Amstel dam. The city was founded in the late 12th century as a small fishing village. The historical centre is renowned for its concentric canals, largely built during the Dutch Golden Age in the 17th century. The city has been compared with Venice. Beyond the canals, the similarities have a basis in the cities' long histories of overseas trading, translating in openess and tolerance.

As of January 1, 2006, the city of Amsterdam has a population of 743,027 inhabitants and is by population size the largest city in the Netherlands. The urban area has a population of 1,021,870 inhabitants and is part of the conglomerate metropolitan area Randstad, with a population of 6,659,300 inhabitants.

Amsterdam began as a fishing village in the late 12th century. According to legend, Amsterdam was founded by two Frisian fishermen, who landed on the shores of the Amstel in a small boat with their dog. The damming of the river Amstel gave it its name (in Dutch: Amstelredam "Dam in the Amstel", turned into Amsterdam in the course of time). The traditional founding of the city of Amsterdam is 27 October 1275, when the inhabitants living around the Amstel dam were granted freedom from paying the tolls associated with the locks and bridges of Holland. It was given city rights in 1300 or 1301. From the 14th century on, Amsterdam flourished, largely on the basis of trade with the cities of the Hanseatic League. In 1345 a Eucharistic miracle occurred near the Kalverstraat and Amsterdam would remain an important pilgrimage city until the Alteration to the protestant faith; today the Stille Omgang - a silent procession in civil dress - remains of the rich pilgrimage history.

Amsterdam is noted for many outstanding museums, including the Rijksmuseum, the Stedelijk Museum, the Rembrandt House Museum, and its world-class symphony orchestra, the Concertgebouworkest, the home base of which is the Concertgebouw. The Van Gogh Museum houses the largest collection of Van Gogh's paintings and drawings in the world. Anne Frank House is also a popular tourist attraction.

Amsterdam is also famous for its red-light district, de Wallen. Window prostitution is legal in the Netherlands at specific places. The red-light district is located in the centre of the city along major canals and is clearly marked on maps.

Centered around the Wallen, but also elsewhere in the city, coffee shops sell cannabis. This is not completely legal but is tolerated when small quantities of cannabis (up to 5 grams) are involved.