The capital of Mexico , Mexico City is one of the oldest cities in North America and one of the largest cities in the world . Spanish Mexico , or Ciudad de Mexico , ancient ( Nahua , or Aztec ) Tenochtitlan city , capital of Mexico . The capital of Mexico , Mexico City is one of the oldest cities in North America and one of the largest cities in the world . It is located in the central Mexican plateau , in the Valley of Mexico -- more properly a basin -- just north of the Neo-Volcanica Range . Mexico City sits on the bottom of an ancient dried-up lake . It is located in the central Mexican plateau , in the Valley of Mexico -- more properly a basin -- just north of the Neo-Volcanica Range . The city is about 7,350 feet ( 2,240 meters ) above sea level and surrounded by mountains . Mexico lies in an endorheic ( characterized by interior drainage ) basin at an altitude of approximately 7,350 feet ( 2,240 metres) . The city is about 7,350 feet ( 2,240 meters ) above sea level and surrounded by mountains . It is walled in by the sierras of Monte Alto and Monte Bajo to the west , the Sierra de las Cruces to the southwest , and the sierras of Ajusco and Chichinautzin to the south . Nearby are two volcanoes that can only be seen from the city on days when wind has cleared out the pollution . Toward the east , the city ends in a plain that meets the Sierra Nevada , with its two extinct volcanoes , Ixtacihuatl ( 17,342 feet ) and Popocatepetl ( 17,883 feet ) , which were once a familiar sight from Mexico City but are now usually obscured by pollution . Mexico City has a very bad pollution problem because the mountains around the city act as walls and block in dust and smog . Air pollution -- made up mostly of ozone , suspended particles , and sulfur dioxide -- has affected the climate by partially blocking the Sun's rays . Mexico City has a very bad pollution problem because the mountains around the city act as walls and block in dust and smog . Poor air circulation out of the mountain-walled city aggravates pollution . The plaza known as the Zocalo is the center of the city . The Zocalo ( previously known as the Plaza Mayor and now officially called the Plaza de la Constitucion ) is the traditional hub of the city . The Alameda Central , a park , is west of the Zocalo . The Alameda Central ( Central Mall ) roughly marks the western edge of the old colonial city . The Alameda Central , a park , is west of the Zocalo . The Alameda Central , west of the Zocalo , was created in 1592 . The park has a zoo , an amusement park , a castle , museums , gardens , lakes , and fountains . Its grounds contain museums , a zoo , botanical gardens , an amusement park , lakes , and fountains . The Zona Rosa ( Pink Zone ) , with its hotels , shops , and restaurants , is one of Mexico City's main tourist and entertainment areas . The Pink Zone ( "Zona Rosa" ) is the main tourist and entertainment area . At the southeastern tip of the city lies a small town called Xochimilco . At the southeastern tip of the city , Xochimilco , another small town subsumed by the city , is a popular tourist destination because of its chinampas , or "floating gardens," boats made out of reeds on which the Indians have grown plants since pre-Columbian times . It is a popular tourist attraction because of its chinampas , or floating gardens . At the southeastern tip of the city , Xochimilco , another small town subsumed by the city , is a popular tourist destination because of its chinampas , or "floating gardens," boats made out of reeds on which the Indians have grown plants since pre-Columbian times . People known as mestizos are of mixed European and Indian descent . The city was traditionally inhabited by mestizos ( people of mixed European and Indian descent ) and criollos ( Mexicans of European descent ) , but steady immigration from the countryside has given it a more Indian character . People called criollos can trace their family back to Europeans only . The city was traditionally inhabited by mestizos ( people of mixed European and Indian descent ) and criollos ( Mexicans of European descent ) , but steady immigration from the countryside has given it a more Indian character . Most of the population of the city is Christian , and the vast majority is Roman Catholic . Most Mexico City dwellers are Roman Catholic , although a number of Protestant churches have gained converts . There is also a small but important Jewish community . There is also a small but influential Jewish community . Mexico City has always been one of the main cultural centers of Latin America , and much of the culture there is uniquely Mexican . Mexico City has always been one of the prominent cultural centres of Latin America . The Palace of Fine Arts is the home of the famous Mexican Ballet Folklorico , which is known for its colorful costumes as well as its dancing . The downtown Palace of Fine Arts is the traditional concert and opera hall . The most popular sports in the city are soccer and bullfighting . The most popular spectator sports are football ( soccer ) and bullfighting . The Plaza Mexico bullring is the largest in the world . Plaza Mexico is the largest bullring in the world . The National Museum of Anthropology is one of the best in the world . The National Museum of Anthropology is generally considered the world's finest in its specialty . Because Mexico City is the capital of Mexico , it is an important economic center for the country . Modern Mexico City is the centre of the country's political , economic , and cultural life . Industry , retail stores , finance , and communications are all centered there . Even more than other economic activities , Mexico's financial services are concentrated in the capital . In addition , banking , construction , and tourism are also very important to the city's economy . Tourism is a major source of income . The city's products include chemicals , plastics , cement , yarns , and textiles . The main industries are construction and the production of chemicals , plastics , cement , and yarns and textiles . The Aztec Indians founded a city on the site of modern-day Mexico City in the 14th century . The Aztecs arrived in the Valley of Mexico in the 13th century . They believed that they received a sign from their god Huitzilopochtli when they saw an eagle perched on a cactus eating a serpent . According to tradition , they founded Tenochtitlan ( "Place of the High Priest Tenoch" ) after much wandering when they saw on an island in Lake Texcoco the sign that their god Huitzilopochtli had indicated -- an eagle perched on a cactus , eating a serpent . The eagle was on an island in Lake Texcoco . According to tradition , they founded Tenochtitlan ( "Place of the High Priest Tenoch" ) after much wandering when they saw on an island in Lake Texcoco the sign that their god Huitzilopochtli had indicated -- an eagle perched on a cactus , eating a serpent . On that island they founded the city they called Tenochtitlan . According to tradition , they founded Tenochtitlan ( "Place of the High Priest Tenoch" ) after much wandering when they saw on an island in Lake Texcoco the sign that their god Huitzilopochtli had indicated -- an eagle perched on a cactus , eating a serpent . The city grew rapidly and was the center of the Aztec's great empire . Tenochtitlan quickly spread over the island , marshes , and swamps . In 1519 , Aztec culture was forever changed when the Spaniards arrived . When the Spaniards led by Hernan Cortes arrived in 1519 , Tenochtitlan had about 100,000 inhabitants . Led by Hernan Cortes , the Spaniards fought a war against the Aztec . When the Spaniards led by Hernan Cortes arrived in 1519 , Tenochtitlan had about 100,000 inhabitants . Because the Spaniards had better weapons , Cortes and his army took over Tenochtitlan by 1521 . Cortes razed Tenochtitlan in 1521 and constructed a Spanish city on its ruins . They quickly destroyed the Aztec city and built a Spanish city in its place . Cortes razed Tenochtitlan in 1521 and constructed a Spanish city on its ruins . It soon became the most important city of the Americas . It soon became the most important city of the Americas , with jurisdiction extending well into the present United States and as far south as Panama . In the early 20th century the city was the site of fighting during the Mexican Revolution . During the Mexican Revolution ( 1910-17 ) , the city became a battlefield . The city continued to grow through much of the 20th century . The city continued to grow , but its services deteriorated . However , an earthquake shook Mexico City in 1985 , destroying many buildings and killing thousands of people . An earthquake shook the city in 1985 , destroying many buildings and killing some 7,000 people .