The origins of B.S.B can be traced back to the 7th century, as there are signs that a water village (Kampong Ayer) existed at the site of the present Kampong Kota Batu and the National Museum. The capital was located at many sites during the ages along the Sungai Brunei River which formed the focal point of the marine activities of the Brunei Malays. The move away from the river based settlement to the land locked settlement of today was begun by a British resident Mc Arthur in 1906 who encouraged people to move and settle on the reclaimed land on the left bank of the Sungai Brunei .The Sultan moved in 1909 and he was followed by the Chinese shopkeepers in 1910. This was followed by the creation of the municipal board in 1921 and a new mosque and palace was built in 1922. Bandar Seri Begawan was in fact known as Brunei Town until 1970. Today the city is the center of finance, commerce and the government of Brunei.