Bavaria is a state of Germany, located in the southeast. With an area of 70,548 square kilometres (27,200 sq mi), it is the largest state by area, forming almost 20% of the total land area of Germany. Bavaria is Germany's second most populous state (after North Rhine-Westphalia), with 12.5 million inhabitants. Bavaria's capital and largest city is Munich, the third largest city in Germany. Bavaria is one of the oldest continuously existing states in Europe; it was established as a stem duchy in the year 907.