Lima, Peru's capital was once reputed to be the most beautiful city in Spanish America. Lima today retains much of its charm, despite its rather shapeless expanse of modern suburbs and dusty shantytowns that run for miles in each direction along the Panamerican Highway. Long established as Peru's seat of government, the city is home to more than eight million people, over half of who live in relative poverty without decent water supplies, sewage or electricity. There is still a certain elegance to the old colonial center, and the city hosts a string of excellent museums.