The history of Lima, the capital of Peru, began with its foundation by Francisco Pizarro on January 18, 1535. The city was established on the valley of the Rímac River in an area populated by the Ichma polity. It became the capital of the Viceroyalty of Peru and site of a Real Audiencia in 1543. In the 17th century, the city prospered as the center of an extensive trade network despite damage from earthquakes and the threat of pirates. However, prosperity came to an end in the 18th century due to an economic downturn and the Bourbon Reforms.
The population of Lima played an ambivalent role in the 1821–1824 Peruvian War of Independence; the city suffered exactions from Royalist and Patriot armies alike. After independence, Lima became the capital of the Republic of Peru. It enjoyed a short period of prosperity in the mid-19th century until the 1879–1883 War of the Pacific when it was looted and occupied by Chilean troops. After the war, the city went through a period of demographic expansion and urban renewal. Population growth accelerated in the 1940s spurred by immigration from the Andean regions of Peru. This gave rise to the proliferation of shanty towns as public services failed to keep up with the city expansion.