Chiang Mai (New City) was founded in 1296 by King Mengrai as the capital of the first independent Thai state, Lanna Thai (Kingdom of One Million Rice Fields). It became the cultural and religious center of the northern Tai, those who had migrated from southern China to dwell in Thailand, and remained so throughout the turbulent period of recurring Burmese attacks. The Burmese finally captured Chiang Mai in 1556 and occupied it until King Taksin retook the city in 1775, driving the Burmese forces back to near the present border. Burmese influence on religion, architecture, language, cuisine, and culture, however, remains strong.

Local princes, called chao, remained in nominal control of the city in the late 18th and early 19th century, though they deferred to the king of Siam in Bangkok. In 1874, King Chulalongkorn (Rama V), concerned with encroachment by the British (who had teak-logging interests as occupiers of Burma) and fearful of a conflict with them, sent a commission to Chiang Mai, which eventually limited the power of the local princes and brought the Lanna kingdom further under the control of the central government in Bangkok. In 1939, the city was formally and fully integrated into the kingdom of Thailand, becoming the administrative center of the north. In 1996, the city celebrated its 700th anniversary.

These days, Chiang Mai is booming and the telltale cranes, scaffolding and racket of a developing city are everywhere. The population is an estimated 167,000 (in a province of some 1.5 million) and growing along with the attendant "big city" problems of suburban sprawl, rush-hour traffic and water shortages (though nothing compared to Bangkok).

It would be difficult to find a city that reflects more of the country's diverse cultural heritage and modern aspirations than Chiang Mai. Tour buses crowd Burmese-style wats ablaze with the color of saffron and humming with the chanting of monks. Hilltribe groups sell their wares in the busy, modern market. Narrow streets lined with ornately carved teak houses lie in the shadow of contemporary skyscrapers. Chiang Mai's heart is its Old City, an area surrounded by vestiges of walls and moats originally constructed for defense; yet Chiang Mai is a modern city with a growing infrastructure of modern shopping malls and condominiums. The contrast is part of the town's charm.

Because of its temperate climate, many Thais choose Chiang Mai as a summer retreat during March, April, and May, when the rest of the country is wilting under the heat. Its central location makes Chiang Mai an excellent base for exploring the north of Thailand.