Claim: Toronto annexed and merged with surrounding municipalities.

Toronto is the most populous city in Canada and the provincial capital of Ontario . With a population of 2,731,571 , it is the fourth most populous city in North America after Mexico City , New York City , and Los Angeles . Toronto is the centre of the Greater Toronto Area -LRB- GTA -RRB- , the most populous metropolitan area in Canada , and anchors the Golden Horseshoe , a heavily urbanized region that is home to 9.2 million people , or over 26 % of the population of Canada . A global city , Toronto is an international centre of business , finance , arts , and culture , and is recognized as one of the most multicultural and cosmopolitan cities in the world .   Aboriginal peoples have inhabited the area now known as Toronto for thousands of years . The city itself is situated on the southern terminus of an ancient Aboriginal trail leading north to Lake Simcoe , used by the Wyandot , Iroquois , and the Mississauga . Permanent European settlement began in the 1790s , after the broadly disputed Toronto Purchase of 1787 , when the Mississaugas surrendered the area to the British Crown . The British established the town of York , and later designated it as the capital of Upper Canada . During the War of 1812 , the town was the site of the Battle of York and suffered heavy damage by U.S. troops . York was renamed and incorporated as the city of Toronto in 1834 , and became the capital of the province of Ontario during Canadian Confederation in 1867 . The city proper has since expanded past its original borders through amalgamation with surrounding municipalities at various times in its history to its current area of 630.2 km2 .   Located in Southern Ontario on the northwestern shore of Lake Ontario , Toronto is situated on a broad sloping plateau intersected by an extensive network of rivers , deep ravines , and urban forest , with 140 independently unique and clearly defined official neighbourhoods making up the city . The diverse population of Toronto reflects its current and historical role as an important destination for immigrants to Canada , with nearly 50 % of residents belonging to a visible minority population group , and over 200 distinct ethnic origins represented among its inhabitants . While the majority of Torontonians speak English as their primary language , there are over 160 different languages spoken in the city .   Toronto is a prominent centre for music , theatre , motion picture production , and television production , and is home to the headquarters of Canada 's major national broadcast networks and media outlets . Its varied cultural institutions , which include numerous museums and galleries , festivals and public events , entertainment districts , national historic sites , and sports activities , attract over 25 million tourists each year . Toronto is known for its many skyscrapers and high-rise buildings , in particular the tallest free-standing structure in the Western Hemisphere , the CN Tower . As Canada 's commercial capital , the city is home to the Toronto Stock Exchange , the headquarters of Canada 's five largest banks , and the headquarters of many large Canadian and multinational corporations . Its economy is highly diversified with strengths in technology , design , financial services , life sciences , education , arts , fashion , business services , environmental innovation , food services , and tourism .