Bandar Seri Begawan: A modern capital built upon an ancient water village legacy

Countries & Cities · Published 29 September 2026 Swipe more like this →

In short: Brunei's capital is a unique blend of modern administration and historic riverine life. Once known as Brunei Town, this city houses the world's largest residential palace and the sprawling Kampong Ayer water village. It has evolved from a 16th-century sultanate hub into a contemporary centre of government and commerce.

Bandar Seri Begawan, the capital of Brunei, sits along the Brunei River near the South China Sea. Its history is deeply tied to Kampong Ayer, a massive stilt settlement that has existed for roughly 1,000 years. While the city was formerly called Brunei Town, it was renamed in 1970 to honour Sultan Omar Ali Saifuddien III. The name itself derives from the Sanskrit term for 'shining and saintly,' reflecting the city's cultural and religious significance.

The city's urban development shifted significantly in the 20th century. Following the introduction of the British Residential system in 1906, officials like Malcolm McArthur prioritized moving residents from the water to land to address sanitation issues. This transition accelerated after World War II, during which the city suffered heavy damage from Allied bombing. Post-war reconstruction and the 1953 National Development Plan, funded by M$100 million, helped transform the area into a modern administrative and financial hub.

Today, the city serves as the seat of government and is home to the Istana Nurul Iman, the world's largest residential palace. The municipal area was expanded in 2007 to cover 100.36 square kilometres, encompassing various mukims and villages. Despite its modern infrastructure, including the Sultan Haji Omar Ali Saifuddien Bridge opened in 2020, the city retains its connection to the past through the 'Venice of the East' water village, which remains a vital part of the capital's identity and daily life.

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