Taipei is the national capital of Taiwan. It is in the northern part of the island in a basin between the Yangming Mountains and the Central Mountains. It is, with 2.6 million inhabitants, the fourth largest administrative area of Taiwan, after New Taipei, Kaohsiung and Taichung. However, the Greater Taipei metropolitan area, which encompasses the central Taipei City along with the surrounding New Taipei City and Keelung, represents the largest urban cluster in Taiwan with nearly 7 million people. Taipei serves as the island's financial, cultural and governmental centre.