Early history The growth and development of Brunei's historic capital city unfolded in three main stages. The first stage began in the 17th century with the emergence of a water settlement near present-day
Kota Batu. In the second stage the capital shifted to the area around what is now
Kampong Ayer—a collection of water villages. Today, Kampong Ayer, originally the ancient capital built over the
Brunei River, serves as a suburb of the modern capital on adjacent land, having thrived particularly during Sultan
Bolkiah's reign. This city was developed on land during the third phase, particularly after 1906. Over 300 years of intermittent conflict between the Malay Muslim tribes and Spanish conquistadors, known in Spanish chronicles as the
Moro Wars, began in 1578 when Catholic Spaniards attacked Kampong Ayer during the
Castilian War. Pirates, many of whom were Muslim sailors from the southern Philippines and Borneo, including destitute princes from the royal families of
Sulu and Brunei, took advantage of the void left by Kampong Ayer's loss in authority throughout the 16th and 17th century. Along with other important sites like
Endau and
Jolo, the capital became a major hub for piracy and the trade in stolen goods and slaves as the sultan attempted to regulate or tax these pirate towns.Kampong Ayer was still humble and less affluent by the middle of the 19th century, and its look had not altered much since
Antonio Pigafetta's time. It was dubbed a "Venice of hovels" by
Rajah James Brooke in 1841. Houses were constructed on
mudflats, encircled by mud at low tide and water at high tide, and a floating market was crowded with people peddling things from canoes. Despite its unattractive appearance, the town was renowned for its packed buildings and the spacious but uncomfortable palace, where Brooke was made to feel quite welcome by the sultan and his court despite the gloomy and basic lodgings. Known as the "Venice of Borneo", Kampong Ayer is distinguished by its position on a wide river that empties into a sizeable lake and by the fact that its homes are perched on piles that are around above the tide. The formerly thriving town has lost both size and significance, as seen by its dilapidated buildings and shortage of defences. Once enclosed by a sturdy brick wall and furnished with opulent furnishings, the sultan's palace looks like a cheap shed. The town's filthy state is exacerbated by offensive smells coming from uncovered mud, where waste builds up. In sharp contrast to the town's historical splendour, the majority of the population is made up of slaves and the Sultan's and nobility's dependents.
Colonial era Brunei Town's development unfolded in three major phases, with the third beginning in 1906 under
Malcolm McArthur's guidance, focusing on transitioning the settlement to land. His vision aimed to address the sanitation issues that were most severe in Kampong Ayer, a water village with 8,000–10,000 residents when the
Residential system was introduced. McArthur prioritised constructing a land-based colony, starting with his own residence,
Bubungan Dua Belas, even though the sultan's palace remained in Kampong Ayer. By 1910, Chinese immigrants had opened shops, further establishing the colony on land. In 1911 the water village, largely populated by
Malay Muslim and a small
Kedayan community in nearby areas, was home to many houses built over water. The capital endured severe hardship after losing
Limbang, which had provided essential resources to river villagers; this loss also undermined Sultan
Hashim Jalilul Alam Aqamaddin's prestige and authority amid growing economic challenges. In 1920, the area was officially designated as Brunei's capital and municipal territory. Along the western riverbanks, government buildings and a mosque were constructed in the same year. Later on 1 January 1921, the Brunei Town Sanitary Board (BTSB) was established to oversee its development. In 1922, Sultan
Muhammad Jamalul Alam II's decision to relocate his palace from
Kampung Sultan Lama to the interior of Brunei Town renewed interest in Resident McArthur's proposal for relocating the
Kampong Ayer community. His involvement inspired Kampong Ayer residents to consider mainland resettlement, and relocation efforts in the 1920s began expanding beyond the
city centre to areas like
Tungkadeh and
Kumbang Pasang, marking a significant shift in Brunei's urban development. prior to the Allied landings at
Muara Beach On 22 December 1941, Brunei Town was overrun by the Japanese, who had launched an assault starting in
Kuala Belait. To British officers they had seized, the Japanese declared their intention to free Asia from colonial rule. Due to an
Allied embargo that hampered the local economy, Brunei Town experienced extreme economic duress during the
Japanese occupation. On 22 December 1941, Sultan
Ahmad Tajuddin, who was based in
Kampong Sumbiling, surrendered to
General Tawaguchi. By encouraging agriculture and requiring farmers to turn over a percentage of their harvests, Japan sought to integrate Brunei's culture and economy with its own, appointing
Ibrahim Mohammad Jahfar as head of administration under Governor Takamura. The Japanese instituted stringent cultural initiatives, such as teaching Japanese language and values and establishing youth groups like the Brunei Malay Organisation, in an effort to exploit the oil riches. The town was brutally bombarded by Allied forces beginning in November 1944 and subjected to extreme brutality by the Japanese military police, the
Kempeitai. After three days of warfare, American and Australian forces captured Brunei on 10 June 1945, but Brunei Town suffered significant damage. Brunei Malays had a stronger sense of national identity at this time, and local partners went on to play important roles in the burgeoning nationalist movement. The town's wartime population of 16,000 was reduced to a small number of people who remained when the war came to a close due to Allied bombs and food shortages. Residents were forced to observe from neighboring hills or take cover in the bush after the bombers destroyed almost all of the town's homes and businesses. Bruneians started reconstructing their homes out of the debris left by the bombs after the Japanese withdrew into the forest in June 1945. The town became a focal point for important institutional and religious transformation following the war. To further Islamic matters, a board of 19 notable individuals and not all of them were religious experts, was formed in 1948. To increase the sultan's legitimacy in the face of British scrutiny, this reform sought to standardise religious courts, codify
Islamic law, and enhance the management of Islamic services under his direct control. Despite having little contact with Brunei's western regions, new groups like the
Organisation of Islamic Cooperation contributed to the region's religious life in the 1950s, which witnessed a considerable increase in religious activity in the town. Despite the oil industry's fast growth in urban areas like
Seria and
Kuala Belait, no clear regional religious identity was able to emerge because of the close institutional ties between Brunei Town's religious establishment and the surrounding districts.In the post-war period, particularly throughout the 1950s and 1960s, Brunei focused on social and religious growth as well as urban reconstruction. Years of occupation during the
Pacific War had left the city's infrastructure severely damaged, necessitating quick solutions like the rapid reconstruction of Brunei Town's stores and the temporary thatched-roof rebuild of Masjid Kajang. In 1953, the town saw significant investment through a five-year
National Development Plan funded with
M$100 million, primarily for infrastructure, following Sultan
Omar Ali Saifuddien III's successful negotiation with the British for increased corporate taxes and expanded war reparations. In 1953, a major development plan was introduced, dedicating $100 million to the city's growth—a significant investment for a community of just 54,000. That same year on 1 August, the BTSB was renamed the Brunei Town Municipal Board (BTMB) and administered by the British Resident until 1959. From then on, the Brunei–Muara District Officer took on dual roles as head and chairman of the BTMB. Brunei's population tripled to 83,877 by 1960 as a result of immigration brought on by oilfield finds in Belait. The capital was now competing economically with the burgeoning cities of Seria and Kuala Belait. Although the majority did not hold Bruneian citizenship, the Chinese community, who were extensively involved in local commerce, increased to a quarter of the population by 1960. The
Brunei revolt began on 8 December 1962, when the
North Kalimantan National Army quickly captured Brunei Town, the
oilfields at Seria, and portions of
Sarawak and
North Borneo. In response, British forces, including
Gurkhas and
Royal Marines, regained control of most key centres by 11 December, resulting in the capture or surrender of around 2,700.
Independence era Together with the expansion of the oil and gas industry, commercialisation began to transform Brunei's capital and a large number of public buildings were constructed, along with the development of a central business district in the 1970s and 1980s. Brunei Town was formally renamed Bandar Seri Begawan on 4 October 1970, in honour of the retired Sultan Omar Ali Saifuddien III, with the renaming ceremony held at the capital. On 1 January 1984, at midnight, Sultan
Hassanal Bolkiah declared Brunei's
independence at the
Taman Haji Sir Muda Omar 'Ali Saifuddien. The
Ministry of Home Affairs has been in charge of the Bandar Seri Begawan Municipal Board since the country's independence in 1984. The new town has grown along Jalan Berakas and Jalan Muara in the north and Jalan Tutong and Jalan Gadong in the west. A 1998
Asia Week study ranked Bandar Seri Begawan among Asia's top capital cities for 1999 and 2000, highlighting its cleanliness and security as key factors in its recognition. On 1 August 2007, Sultan Hassanal Bolkiah gave consent for the expansion of the city from to . ==Government==