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Taipei , officially known as Taipei City , is the capital of Taiwan . Situated at the northern tip of Taiwan, Taipei is located on the Tamsui River; it is about 25km southwest of Keelung, a port city on the Pacific Ocean. It lies in the Taipei Basin, an ancient lakebed bounded by the two relatively narrow valleys of the Keelung and Xindian rivers, which join to form the Tamsui River along the city's western border. The city proper is home to an estimated 2,693,672 people. Taipei, New Taipei, and Keelung together form the Taipei–Keelung metropolitan area with a population of 6,900,273, the 40th most populous urban area in the world. They are administered under three municipal governing bodies. Taipei sometimes refers to the whole metropolitan area