The region known as the Taipei basin was home to Ketagalan tribes before the eighteenth century. Han Chinese mainly from Fujian province of China began to settle in the Taipei Basin in 1709. In the late 19th century, the Taipei area, where the major Han Chinese settlements in northern Taiwan and one of the designated overseas trade port, Tamsui, were located, gained economic importance due to the booming overseas trade, especially that of tea exportation. In 1875, the northern part of Taiwan was separated from Taiwan Prefecture and incorporated into the new Taipei Prefecture as a new administrative entity of the Chinese government. Having been established adjoining the flourishing townships of Bangkah and Twatutia, the new prefectural capital was known as Chengnei, "the inner city", and government buildings were erected there. From 1875 until the beginning of Japanese rule in 1895, Taipei was part of Danshui County of Taipei Prefecture and the prefectural capital. In 1886, when Taiwan was proclaimed a province of China, Taipei city was made the provincial capital. Taipei remained a temporary provincial capital before it officially became the capital of Taiwan in 1894. All that remains from the old Qing Dynasty city is the north gate. The west gate and city walls were demolished by the Japanese while the south gate, little south gate and east gate were extensively modified by the Kuomintang (KMT) and have lost much of their original character.
As settlement for losing the First Sino-Japanese War, China ceded the island of Taiwan to the Empire of Japan in 1895 as part of the Treaty of Shimonoseki. After the Japanese take-over, Taipei, called Taihoku in Japanese, was retained as the capital and emerged as the political center of the Japanese Colonial Government. During that time the city acquired the characteristics of an administrative center, including many new public buildings and housing for civil servants. Much of the architecture of Taipei dates from the period of Japanese rule, including the Presidential Building which was the Office of the Taiwan Governor-General.
During Japanese rule, Taihoku was incorporated in 1920 as part of Taihoku Prefecture. It included Bangka, Dadaocheng, and Chengnei among other small settlements. The eastern village Matsuyama was annexed into Taihoku City in 1938. Upon the Japanese defeat in the Pacific War and its consequent surrender in August 1945, the Kuomintang (Chinese Nationalist Party) assumed control of Taiwan. Subsequently, a temporary Office of the Taiwan Province Administrative Governor was established in Taipei City.
On December 7, 1949, the KMT government under Chiang Kai-shek, after being forced to flee mainland China by the Communists at the Chinese Civil War, declared Taipei as the provisional capital of the Republic of China, with the official capital at Nanjing (then romanised as Nanking).
Taipei expanded greatly in the decades after 1949, and as approved on December 30, 1966 by the Executive Yuan, Taipei was declared a special centrally administered municipality on July 1, 1967 and given the administrative status of a province. In the following year, Taipei City expanded again by annexing Shilin, Beitou, Neihu, Nangang, Jingmei, and Muzha. At that time, the city's total area increased fourfold through absorbing several outlying towns and villages.
The city's population, which had reached one million in the early 1960s, also expanded rapidly after 1967, exceeding two million by the mid-1970s. Although growth within the city itself gradually slowed thereafter — its population had become relatively stable by the mid-1990s — Taipei remained one of the world's most densely populated urban areas, and the population continued to increase in the region surrounding the city, notably along the corridor between Taipei and Keelung. In 1990, 16 districts in Taipei City were consolidated into the current 12 districts.
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