WebLatin America and the Caribbean. Lima ( / ˈliːmə / LEE-mə; locally [ˈlima] ), founded in 1535 as the Ciudad de los Reyes ( locally [sjuˈðað ðe los ˈreʝes], Spanish for "City of Kings "), is the capital and largest city of Peru. It is located in the valleys of the Chillón, Rímac and Lurín Rivers, in the desert zone of the central ...