the first municipality in the country, and it is sometimes referred to as 'Old Livingstone'. Its proximity to mosquito breeding areas caused deaths from malaria, and so after 1900 the Europeans moved to higher ground known as Constitution Hill or Sandbelt Post Office, and as that area grew into a town it was named Livingstone in honour of the explorer. In the mid-1890s Rhodesia Railways had reached Bulawayo in Southern Rhodesia spurring industrial development there, fuelled by the coal mines at Hwange (then named Wankie) just south-east of Mosi-oa-Tunya. The railway was extended to Hwange for the coal, but Rhodes' vision was to keep pushing north to extend the British Empire, and he would have built it to Cairo if he could. In 1904 the railway reached the Falls on the southern side and construction of the Victoria Falls Bridge started. Too impatient to wait for its completion, Rhodes had the line from Livingstone to Kalomo built and operations started some months in advance of the bridge using a single locomotive which was conveyed in pieces by temporary cableway across the gorge next to the bridge building site. The city was founded in 1905. The British South Africa Company moved the capital of the territory there in 1907. In 1911 the company merged the territory with North-Eastern Rhodesia as Northern Rhodesia. Livingstone prospered from its position as a gateway to trade between north and south sides of the Zambezi, as well as from farming in the Southern Province and commercial timber production from forests to its north-west. A number of colonial buildings were erected which still stand. Although the capital was moved to Lusaka in 1935 to be closer to the economic heartland of the Copperbelt, industries based on timber, hides, tobacco, cotton (including textiles) and other agricultural products grew. A hydroelectric plant was built taking water from the Eastern Cataract of the Falls. The town of Victoria Falls in Southern Rhodesia had the tourist trade, but many supplies were bought from Livingstone. Of all the towns in Northern Rhodesia, colonial Livingstone took on the most British character. Surrounded by large numbers of African settlements, it had a strongly marked segregation which while not being officially enshrined as an apartheid policy, had similar practical effects. The north and western areas of the town and the town centre were reserved for the colonial government and white-owned businesses and associated residential areas,