Much of what is at present in the long life of the city is there form a long time. The dam that gave the muddy little settlement its name arose over the river Amstel during the last decades of the 11th century. Not much is known about this village, Amstelredamme, as it was called, except that its inhabitants were simple fishermen and farmers. This dam is still the heart of the city, but it is now used as a square. Not surprisingly it is called Dam Square, and it continues to serve as location for a variety of civic functions and events, it’s also popular with pigeons.

Meanwhile the town extended slowly from the centre around the dam. Land was won from the original banks of the Amstel by filling it in with mud, turf and rubbish; dikes were constructed and canals were dug. The first of the chapels where the present Oude Kerk stands was constructed at the start of 1300.

As Amsterdam grew it begun to cultivate its individuality, from then until today there is a strong contrast between it and the rest of the country. The rivalry between the Bishops who ruled elsewhere in Holland, and who relied upon the feudal systems crushing burden of heavy taxation for their support, as opposed to the Counts allied with Amsterdam, who appreciated the fact that merchants were not serfs, and who lured merchants by infrastructure improvements, privileges and guarantees. They understood what became and still is one of the foundations of the Netherlands, the need to deal with the new and foreign without smothering them in rules and regulations.

The city began to assume the function of warehouse for goods in transit throughout Europe. Amsterdam's harbor had a stabilizing function: fish from the south, grain and timber from the Baltic countries were traded in Amsterdam markets. Because of this economic prosperity Amsterdam developed into Holland'’ largest city.

Amsterdam is still the undisputed cultural centre in the Netherlands with orchestras, ballet and stages, museums and galleries and two universities. Soccer plays an important role in the life of many Amsterdammers. In the seventies Amsterdam was famous once again because of Ajax, I’'s soccer team. Ajax and the Dutch national squad’s victories are celebrated like national feasts in Amsterdam.