Founded on China's southeastern coast, the Wu State and Yue State contended for dominance in today's Zhejiang Province during the Spring and Autumn periods of 770 to 476 B.C. The capital now is Hangzhou City, the first capital city in south-east China, and archaeological finds in the region show that people settled there as early as 4,700 years ago.

The founding king of Wuyue State was Qian Liu (852-953). He was a noted strategist and statesman under whose rule Wuyue State prospered. He made Hangzhou capital of Wuyue State during the period 907 to 979, as it was again during the Southern Song Dynasty between 1127 and 1279. During both periods Hangzhou achieved great fame and prosperity and the city takes great pride in the Wuyue Culture.

Qian Liu put an end to the upheavel caused by war. He built seawalls, expanded Hangzhou, dredged rivers and lakes. He also developed agriculture, sea transport, and trade. On his death-bed he urged a benign administration of state affairs and his words were strictly followed by four succeeding kings. In 978, the last king of Wuyue State pledged allegiance to the Northern Song Dynasty, saving his people from suffering and the economy from damage.