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Sarajevo is the capital city and largest city of Bosnia and Herzegovina, with a population of 304,614 people in the four municipalities that make up the city proper, and an estimated urban area population of 421,289 people in the Sarajevo Canton as of June 2008[update]. It is also the capital of the Federation of Bosnia and Herzegovina entity, as well as the center of the Sarajevo Canton. Sarajevo is located in the Sarajevo valley of Bosnia proper, surrounded by the Dinaric Alps and situated around the Miljacka river. The city was famous for its traditional religious diversity, with adherents of Islam, Orthodoxy, Catholicism and Judaism coexisting there for centuries. Due to this long and rich history of religious diversity and coexistence Sarajevo has often been called the "Jerusalem of Europe".
Although settlement in the area stretches back to prehistoric times, the modern city arose as an Ottoman stronghold in the 15th century. Sarajevo has attracted international attention several times throughout its history: In 1914 it was the site of the assassination that sparked World War I, while seventy years later it became the host city of the 1984 Winter Olympics. More recently, Sarajevo underwent the longest siege in modern military history during the Bosnian War. Today the city is recovering and adjusting to a post-war reality, as a major center of culture and economic development in Bosnia and Herzegovina. Sarajevo was also the first city in Europe and the second city in the world to have a full-time operational electric tram network running through the city, the first being San Francisco.