Kuala Lumpur has its origins in the 1850s, when the Malay Chief of Klang, Raja Abdullah, hired some Chinese labourers to open new and larger tin mines. They landed at the confluence of Sungai Gombak and Sungai Klang (Klang River) to open mines at Ampang. Sungai Gombak was previously known as Sungai Lumpur, which means muddy river. The Original name for this city was "Pengkalan Lumpur", which means bundle of mud. As time passed, the name changed to Kuala Lumpur, which literally means “muddy confluence” in Bahasa Melayu. Later, tin mines were opened at Pudu and Batu. Among the early notable pioneers are Hiu Siew and Liu Ngim Kong.
These mines developed into a trading post which became a frontier town. Early Kuala Lumpur had many problems, including the Selangor Civil War; it was also plagued by diseases and constant fires and floods. Around the 1870s, the Chinese Kapitan of Kuala Lumpur, Yap Ah Loy, emerged as leader, and became responsible for the survival and subsequent systematic growth of this town. He began to develop Kuala Lumpur from a small, obscure settlement into a booming mining town. In 1880, the state capital of Selangor was moved from Klang to the more strategically advantageous Kuala Lumpur.
In 1881, a flood swept through the town following a fire which engulfed it earlier. These successive problems destroyed the town's structures of wood and atap (thatching). As a response, Frank Swettenham, the British Resident of Selangor, required that buildings be constructed of brick and tile. Many of the new brick buildings mirrored those of shop houses in southern China, characterised by "five foot ways" as well as skilled Chinese carpentry work. This resulted in a distinct eclectic shop house architecture typical to this region. A railway line increased accessibility into the growing town. Development intensified in the 1890s, leading to the creation of a Sanitary Board. In 1896, Kuala Lumpur was chosen as the capital of the newly formed Federated Malay States.
A mixture of different communities settled in various sections of Kuala Lumpur. The Chinese mainly settled around the commercial centre of Market Square, east of the Klang River, and towards Chinatown. The Malays, Indian Chettiars, and Indian Muslims resided along Java Street (now Jalan Tun Perak). The Padang, now known as Merdeka Square, was the center of the British administrative offices.
During World War II, Kuala Lumpur was captured by the Japanese army on January 11, 1942. They occupied the city until August 15, 1945, when the commander in chief of the Japanese Seventh Area Army in Singapore and Malaya, SeishirÅ Itagaki, surrendered to the British administration following the Atomic bombings of Hiroshima and Nagasaki. Kuala Lumpur grew through the war, the rubber and tin commodity crashes and the Malayan Emergency, during which Malaya was preoccupied with the communist insurgency. In 1957, the Federation of Malaya gained its independence from British rule. Kuala Lumpur remained the capital through the formation of Malaysia on September 16, 1963.
On May 13, 1969, one of the worst race riots in Malaysia took place in Kuala Lumpur. The May 13 Incident was a riot between the Malays and the Chinese, with the former apparently dissatisfied with their socio-political situation at the time. The riot resulted in the deaths of 196 people, and led to a major reform in the country's economic policy to favour the Malays.
Kuala Lumpur later achieved city status in 1972, becoming the first settlement in Malaysia to be granted the status after independence. Later, on February 1, 1974, Kuala Lumpur became a Federal Territory. Kuala Lumpur ceased to be the capital of Selangor in 1978 after the city of Shah Alam was declared as the new state capital.
On 14 May 1990, Kuala Lumpur celebrated 100 years of local authority. The new federal territory of Kuala Lumpur flag and anthem were introduced.
In 1998, another political movement known as Reformasi took place mainly in this city. The movement was a result of the sacking of former Malaysian Deputy Prime Minister, Anwar Ibrahim, and resulted in a chain of protests until 1999, where supporters of Anwar Ibrahim took to the streets to demand reforms in the government's administration, among others.
On February 1, 2001, Putrajaya was declared a Federal Territory, as well as the seat of the federal government. The administrative and judicial functions of the government were shifted from Kuala Lumpur to Putrajaya. Kuala Lumpur however still retained its legislative function, and remained the home of the Yang di-Pertuan Agong (King).
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