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=== 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, Brunei|Kota Batu]]. In the second stage the capital shifted to the area around what is now [[Kampong Ayer]]—a collection of water villages.{{Sfn|Sidhu|2009|p=32}} Today, Kampong Ayer, originally the ancient capital built over the [[Brunei River]], serves as a suburb of the modern capital on adjacent land,{{Sfn|Brown|1984|p=203}} having thrived particularly during Sultan [[Bolkiah]]'s reign.{{Sfn|Wright|1977|p=13}} This city was developed on land during the third phase, particularly after 1906.{{Sfn|Sidhu|2009|p=32}} Over 300 years of intermittent conflict between the Malay Muslim tribes and Spanish conquistadors, known in Spanish chronicles as the [[Malay–Portuguese conflicts|Moro Wars]], began in 1578 when Catholic Spaniards attacked Kampong Ayer during the [[Castilian War]].{{Sfn|Wright|1977|p=13}} Pirates, many of whom were Muslim sailors from the southern Philippines and Borneo, including destitute princes from the royal families of [[Sultanate of Sulu|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.{{Sfn|Wright|1977|p=17–18}}[[File:Bandar Seri Begawan in 1844.jpg|thumb|An illustration of Kampong Ayer's stilt houses on the Brunei River in 1844]]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 [[mudflat]]s, 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.{{Sfn|Wright|1977|p=19–20}} 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 {{Convert|10|ft}} 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.{{Sfn|Wright|1977|p=20–22}}
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