Founded in 1548 by the Spanish conquistadors Alonzo de Mendoza, in Laja site of a Native American settlement, under the name Nuestra Señora de La Paz (meaning Our Lady of Peace). The name commemorated the restoration of peace following the insurrection of conquistador Gonzalo Pizarro against Blasco Núñez Vela, the first viceroy of Peru. The city was later moved to its present location in the valley of Chuquiago Marka.
La Paz is the administrative capital of Bolivia, since 1898, and it's where the Executive and Legislative branches of the Bolivian government function, as well as the departmental capital of the La Paz Department.
As of the 2001 census, the city of La Paz had a population of 789,585, and together with the neighboring cities of El Alto and Viacha, make the most populous urban area of Bolivia, with a population of over 1.6 million inhabitants (INE-2001).
Located at an altitude of 3,660 meters (12,008 ft), it is the world's highest capital city in the world.