City (pop., 2001: city, 789,558; metro. area, 1,476,721), administrative capital of Bolivia.
Located in west-central Bolivia, it is the world's highest capital, built over 12,000 ft (3,650 m) above sea level. The city centre lies in a canyon formed by the La Paz River. Founded in 1548 by the Spanish on the site of an Inca village, it was originally called Nuestra Señora de La Paz ("Our Lady of Peace"). In 1835 it was renamed La Paz de Ayacucho to commemorate the decisive battle in the colony's wars of independence. Since 1898 it has been the administrative capital of Bolivia, though Sucre remains the judicial capital. It is Bolivia's principal industrial centre and also the site of the University of San Andrés (1830), the National Museum of Art, and the National Museum of Archaeology.