La Paz officially known as Nuestra Señora de La Paz, also named Chuqi Yapu in Aymara, is the seat of government of the Plurinational State of Bolivia. With an estimated 789,541 residents as of 2015, La Paz is the third-most populous city in Bolivia. Its metropolitan area, which is formed by La Paz, El Alto and Viacha, makes up the most populous urban area in Bolivia, with a population of 2.3 million. It is also the capital of the La Paz Department. The city, located in west-central Bolivia 68 km southeast of Lake Titicaca, is set in a canyon created by the Choqueyapu River. It is located in a bowl-like depression surrounded by the high mountains of the Altiplano. At an elevation of roughly 3,650 m above sea level, La Paz is the highest capital city in the world. Due to its altitude, La Paz has an unusual subtropical highland climate, with rainy summers and dry winters.

La Paz was founded on October 20, 1548 by the Spanish conquistador Captain Alonso de Mendoza at the site of the Inca settlement of Laja as a connecting point between the commercial routes that led from Potosí and Oruro to Lima; the full name of the city was originally Nuestra Señora de La Paz in commemoration of the restoration of peace following the insurrection of Gonzalo Pizarro and fellow conquistadors against the first viceroy of Peru. The city was later moved to its present location in the valley of Chuquiago Marka. La Paz was under Spanish colonial rule as part of the Viceroyalty of the Río de la Plata, before Bolivia gained independence. Since its founding, the city has been the site of numerous revolts. In 1781, the indigenous leader and independence activist Túpac Katari laid siege to the city for a total of six months, but was finally defeated. It is also the seat of the Bolivian legislature, the Plurinational Legislative Assembly, and numerous government departments and agencies. The constitutional capital of Bolivia, Sucre, retains the judicial power.The city hosts all the foreign embassies as well as international missions in the country. La Paz is an important political, administrative, economic, and sports center of Bolivia; it generates 24% of the nation's Gross Domestic Product and serves as the headquarters for numerous Bolivian companies and industries.La Paz is also an important cultural center of Latin America, as it hosts several landmarks belonging to the colonial times, such as the San Francisco Church, the Metropolitan Cathedral, the Plaza Murillo and Jaén Street. The city is renowned for its unique markets, particularly the Witches' Market, and for its vibrant nightlife. Its unusual topography offers unique views of the city and the surrounding mountains of the Cordillera Real from numerous natural viewing points. La Paz is also home to the largest urban cable car network in the world.

• Due to its elevation, there are only four months a year during which the temperature in La Paz is, on average, higher than 10 degrees Celsius
• Despite being the home to Bolivia's government buildings and its financial centre, it's not actually the country's capital — that distinction goes to Sucre
• The big bus station in the center of the tower is actually an Eiffel, as is the Museum of Contemporary Art. Although they may not be as grandiose as the big tower in Paris, they were designed by the same famous architect
• At just over 3,300 meters, the La Paz Golf Club is the highest tournament standard course in the world
• The clocks run backwards on the House of Congress. The massive public timepiece was configured to run backwards in order to pay homage to Bolivia’s indigenous heritage
   

A heavily revised version of the 1967 constitution was promulgated in 1994. According to that document, executive power is vested in a president who is directly elected by popular vote for a five-year term. If no candidate receives an absolute majority of votes, the National Congress must select the president from among the two leading contenders. The bicameral legislature consists of a 36-member Chamber of Senators and a 130-member Chamber of Deputies; members of the legislature are directly elected for five-year terms. The judicial system is headed by a 12-member Supreme Court and a 5-member Constitutional Tribunal, which decides the constitutionality of laws and resolves conflicts between the branches and levels of government. The new constitution required that judges be elected; since 1967 members of both judicial bodies had been appointed by Congress to 10-year terms.

Departments are subdivided into provincias administered by subprefects, and these provinces are subdivided into cantones administered by corregidores. Since the enactment of the Popular Participation Law in 1994, the country has also been divided into municipios , which manage 20 percent of the public sector budget; thus, many communities that had been neglected by the central and provincial governments were able to initiate much-needed public works projects.

Women have voted in Bolivian elections since 1938, but literacy and property requirements nevertheless restricted electoral participation to a tiny proportion of the population until the National Revolution of 1952, when universal suffrage was introduced. The nation’s political system is largely controlled by three political parties; numerous smaller parties ranging in outlook from conservative to left-wing also play a role in the country’s political life.
 

The economy of La Paz has improved greatly in recent years, mainly as a result of improved political stability. Due to the long period of high inflation and economic struggle faced by Bolivians in the 1980s and early 1990s, a large informal economy developed. Evidence of this is provided by the markets found all around the city. While there are stable markets, almost every street in the downtown area and surrounding neighborhoods has at least one vendor on it.

La Paz remains the principal center of manufacturing enterprises that produce finished-product goods for the country, with about two-thirds of Bolivia's manufacturing located nearby. Historically, industry in Bolivia has been dominated by mineral processing and the preparation of agricultural products. However, in the urban centre of La Paz, small plants carry out a large portion of the industry. Food, tobacco products, clothing, various consumer goods, building materials, and agricultural tools are produced. "The tin quotations from London are watched in La Paz with close interest as an index of the country's prosperity; a third of the national revenue and more than half of the total customs in 1925 were derived from tin; in short, that humble but indispensable metal is the hub around which Bolivia's economic life revolves. The tin deposits of Bolivia, second largest in the world, ... invite development."

La Paz’s industries are chiefly food processing and the manufacture of textiles, clothing, shoes, and chemicals. The city is connected by railways and highways with seaports in Peru and Chile and also with Argentina and Brazil. Its international airport is located above the city on the plateau.
 

Automobiles and public transportation are the main means to get into the city. In March 2012, more than 1.5 million vehicles were registered. Heavy traffic is common in the city center and traffic jams occur on peak hours. The La Paz-El Alto Highway is a toll road that connects the city of La Paz with the neighboring city of El Alto. It is the city's main highway. It allows easy access to El Alto International Airport. The highway runs 11,7 km and crosses the city of El Alto. The Southern District, one of La Paz's most affluent and commercial neighborhoods, is relatively separated from the rest of the city, including the CBD. The Avenida Costanera and Avenida Kantutani connect the southern district with the rest of the metropolitan area.

It also serves as a focus city for Boliviana de Aviación, Bolivia's flag-carrier and largest airline. The airport is located in the city of El Alto and is south-west of La Paz's city center. At an elevation of 4,061 metres , it is the highest international airport and fifth highest commercial airport in the world. The runway has a length of 4,000 metres . It is one of Bolivia's three main international gateways, along with Jorge Wilstermann International Airport and Viru Viru International Airport.

International carriers serving El Alto International Airport include Avianca, LATAM Airlines and Peruvian Airlines, which offer direct flights from La Paz to cities such as Bogotá, Lima, Santiago and Cusco. However, most international traffic, including flights to Europe, operated out of Viru Viru International Airport in Santa Cruz de la Sierra which is at a much lower altitude and is capable of handling larger aircraft. Airport facilities include ATMs, cafés and restaurants, car rentals, duty-free shops, and free Wi-Fi internet. It is the main gateway for inter-city buses with several daily departures to all the main Bolivian cities, and routes to Chile and Peru. The city is connected by road with the city of Oruro from where there are routes to Sucre, Potosí and the south of the country. Another highway branches off before Oruro to reach Cochabamba and Santa Cruz. Roads to the west go to Copacabana and Tiwanaku, near Lake Titicaca, and continue to Cuzco, Peru via the border town of Desaguadero. There are also roads north to get to Yungas crossing the Andes Mountains.

Departures to smaller cities and towns within the department use informal stations located in Villa Fátima , Upper San Pedro and near the General Cemetery . A system of urban transit aerial cable cars called Mi Teleférico was opened in 2014. Currently eight lines are in operation, and three more lines are in the planning stage.