Photos of Lima. Lima is the capital of Peru and its largest city with a population of nearly 8 million inhabitants. The city is located on the country's western coast and overlooks the Pacific Ocean. Lima was founded in 1535 by Francisco Pizarro, a Spanish conquistador and its original name was the City of the Kings. Within Lima, there are several districts worth visiting such as Lima Centro (Cecado de Lima), which is the historic downtown area, and Miraflores, an upscale suburb that is tourist friendly.