Hi, I'm Rick Steves, back with more of the best of Europe.

somewhere in the back canals of Amsterdam.

Europe's best-preserved 17th-century city.

Yet at the same time, it's got a fun, contemporary edge.

a time-honored spirit of live and let live.

We'll cruise the canals and bike the back lanes.

We'll sample the Dutch masters from Rembrandt to van Gogh.

we'll enjoy a feast of Indonesian food, Dutch style,

and we'll relax in Amsterdam's Vondelpark.

The historic core of Amsterdam remains much the same today

as when it was first laid out back in the 1600s.

when Dutch merchant ships made this the world's richest city.

with the city's main square and the Royal Palace.

From this spine, the city opens like a fan,

creating a wonderland of canals lined with trees

and townhouses crowned with fancy gables.

which crosses the Amstel River -- were built

The city's founders built a dam on the Amstel

The community that gathered here was named

for that Amstel dam, eventually, Amsterdam.

From here, boats could sail into the interior of Europe

Dutch merchant ships would sail right up the main canal

silks, spices, and porcelain from faraway lands.

But it's being transformed from a gritty industrial area

into a vibrant, modern, and very livable district.

is bringing new life to this now-revitalized neighborhood.

one of these electric boats for a little independent exploring.

Tell me about the difficulty of building here.

and the walls of the canals are built on wooden pilings.

and it comes from the Black Forest in Germany.

This has got to be the most beautiful canal in town.

Oh, today it's one of the most popular places to live.

offers a quiet slice of Dutch urban life.

and inviting little restaurants and cafes.

While just a few blocks from the busy center,

Everything's in its place, and life seems very good.

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Amsterdam