The history of Bandar Seri Begawan can be traced back to the establishment of a Malay stilt settlement on the waters of the Brunei River which became the predecessor of Kampong Ayer today.

[7] Seri Begawan is part of the royal title bestowed on the late sultan upon his abdication in favor of his son, Hassanal Bolkiah, in 1967.

[16] Pirates, many of whom were Muslim sailors from the southern Philippines and Borneo, including destitute princes from the royal families of Sulu and Brunei, took advantage of the void left by Kampong Ayer's loss in authority throughout the 16th and 17th centuries.

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.

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.

[18] 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 10 feet (3.0 m) above the tide.

[19] Brunei Town's development unfolded in three major phases, with the third beginning in 1906 under Malcolm McArthur's guidance, focusing on transitioning the settlement to land.

[14] His vision aimed to address the sanitation issues that were most severe in Kampong Ayer, a water village with 8,000–10,000 residents when the Residential system was introduced.

McArthur prioritised constructing a land-based colony,[20] starting with his own residence, Bubungan Dua Belas, even though the sultan's palace remained in Kampong Ayer.

[22] The capital endured severe hardship after losing Limbang, which had provided essential resources to river villagers; this loss also undermined Sultan Hashim Jalilul Alam Aqamaddin's prestige and authority amid growing economic challenges.

His involvement inspired Kampong Ayer residents to consider mainland resettlement, and relocation efforts in the 1920s began expanding beyond the city centre to areas like Tungkadeh and Kumbang Pasang, marking a significant shift in Brunei’s urban development.

[26] Due to an Allied embargo that hampered the local economy, Brunei Town experienced extreme economic duress during the Japanese occupation.

By encouraging agriculture and requiring farmers to turn over a percentage of their harvests, Japan sought to integrate Brunei's culture and economy with its own, appointing Ibrahim Mohammad Jahfar as head of administration under Governor Takamura.

Brunei Malays had a stronger sense of national identity at this time, and local partners went on to play important roles in the burgeoning nationalist movement.

[28] The town's wartime population of 16,000 was reduced to a small number of people who remained when the war came to a close due to Allied bombs and food shortages.

Years of occupation during the Pacific War had left the city’s infrastructure severely damaged, necessitating quick solutions like the rapid reconstruction of Brunei Town's stores and the temporary thatched-roof rebuild of Masjid Kajang.

[31] In 1953, the town saw significant investment through a five-year National Development Plan funded with M$100 million, primarily for infrastructure, following Sultan Omar Ali Saifuddien III's successful negotiation with the British for increased corporate taxes and expanded war reparations.

In response, British forces, including Gurkhas and Royal Marines, regained control of most key centres by 11 December, resulting in the capture or surrender of around 2,700.

[35] Together with the expansion of the oil and gas industry, commercialisation began to transform Brunei's capital and a large number of public buildings were constructed, along with the development of a central business district in the 1970s and 1980s.

[36] On 1 January 1984, at midnight, Sultan Hassanal Bolkiah declared Brunei's independence at the Taman Haji Sir Muda Omar 'Ali Saifuddien.

The area contrasts sharply with the mountainous Temburong District to the east, featuring low hills, marshy coastal plains, and narrow alluvial valleys along key rivers.

[44] Between Tutong and the capital, hills approach the coast, while the coastal plains around Bandar Seri Begawan remain low and marshy, particularly to the south.

[54] Large numbers of foreign workers are also found within Brunei and the capital city, with the majority being from Malaysia, Thailand, the Philippines, Indonesia (mostly Betawi, Batak, Ambon, Minahasa, Aceh, Malay and Minangkabau), and the Indian subcontinent.

"[60] The Raja Ayang Mausoleum, dating back to the 15th century, is believed to honor a royal who was punished for incest, and it has since become a cultural site where visitors often seek blessings, despite some damage caused by offerings.

Connectivity to the exclave of Temburong is provided by the Sultan Haji Omar Ali Saifuddien Bridge, which opened in 2020—before its construction, travellers had to pass through Sarawak, Malaysia, via the town of Limbang.

[72][73] Ships up to 280 feet (85 m) long may dock in the former port of Dermaga Diraja Bandar Seri Begawan, which is located 17 miles upstream from the mouth of the Brunei River.

On Mondays, Wednesdays, and Saturdays, an outboard motorboat service also carries mail and people between Bandar Seri Begawan to Bangar in Temburong District.

Regular water taxi and boat services depart for Temburong between 7:45 am and 4 pm daily, and also serve the Malaysian towns of Limbang, Lawas, Sundar and Labuan.

[80] Gadong Night Market is known for its diverse food offerings, from local specialties like roti john, ambuyat, and satay to exotic fruits such as durian and jackfruit.

[86][87] Several countries have set up their embassies, commissions or consulates in Bandar Seri Begawan, including Australia,[88] Bangladesh,[89] Belgium, Benin, Burkina Faso, Burma (Myanmar),[90] Cambodia, Canada,[91] Chile, China,[92] Finland,[93] France,[94] Germany,[95] India,[96] Indonesia,[97] Japan,[98] Laos, Malaysia,[99] Netherlands, New Zealand, North Korea, Oman, Pakistan, Philippines, Poland, Russia, Saudi Arabia,[100] Singapore,[101] South Korea, Sweden, Switzerland, Taiwan, Thailand,[102] United Kingdom,[103] United States[104] and Vietnam.