Thimphu 's the capital of Bhutan, and also the name of the surrounding valley and dzongkhag, the Thimphu District. With a population of 98,676 (2005 PHCB), it's also Bhutan's largest city. Thimphu's located at, altitude of 2320m/7656ft. Overview Thimpu became a town in 1961 and grew as the capital of Bhutan. Before 1960, Thimpu was a small settlement but was developed by the King Jigme Dorje Wangchuk to replace the ancient capital of Punakha. Today the city sprawls across the western slopes… (More on Thimphu)