Situated along the Byfjord, Bergen is Norway’s second largest city, and one of its most charming. The city’s history dates back to the early 11th century when Olav Kyrre established a settlement and royal residence here. In 1240, Bergen replaced Trondheim as the capital, and the city quickly prospered. Much of the city's architecture today reflects the lifestyle of the Hanseatic merchants, who resided in narrow row houses near the harbor.