Founded around 1048, Oslo has a long history as a trading hub and became the capital of Norway in 1814.In the area known as Kvadraturen, some of the buildings dating from the 17th century have been preserved. At the beginning of the 19th century, the city was the size of a small town, but with the mid-19th century economic surge, Oslos population began to grow rapidly and people migrated to the capital from all over Norway in search of employment.

In the period from 1850 to 1900, the population increased from a mere 30 000 to 220 000 inhabitants. Since the separation from Sweden in 1905, national awareness increased, and this sentiment lead to a Parliamentary Decree renaming the city Oslo in 1925. In 1948, the two municipalities of Oslo and Aker merged, increasing the area of Oslo to 454 km2 and the population by approximately 135 000 inhabitants. In the 1950s, in order to accommodate the increasing population, the suburbs were developed through large-scale building projects.

At the same time the public transport system was expanded, facilitating the transfer from the suburbs to the city centre. One of the most recently developed areas of the city is Aker Brygge. The Fjord City is the name of the project where the Oslo City Council will reclaim the land next to the sea and develop it in such a way that it will open the fjord to the city. A large area of land which is used today for shipping and cargo will be developed for other purposes, bringing the fjord closer to the city and opening it up to the benefit of Oslo's inhabitants and visitors.

The project was started in 2003, and the first part of the project, including the new Opera House, is expected to be completed in 2008.