Between the Great Bay and the Great Salt Pond, you will find Philipsburg, the Dutch capital of the island. Founded in 1763 by John Philips, a Scottish captain in the Dutch navy, it soon became a bustling center of international trade. Today it is as bustling as ever, with lively shopping streets, cafes, and hotels.

Front Street, the main thoroughfare, is lined with duty-free shops offering everything from Italian leather goods and Japanese cameras to native crafts. Narrow alleyways lead in either direction to arcades and courtyards filled with flowers. Visitors will also find examples of traditional West Indian architecture, including characteristic pastel-colored houses with second-story verandas looking out over the street.

Philipsburg is of course known for its colonial architecture. Not to be missed is Front Street's most prominent landmark - the Courthouse, built in 1793. A grand white wooden structure topped with a cupola. Stop by the Sint Maarten Museum for an an excellent introduction to local history beginning with the island's first settlers, the Arawaks.

Two historic forts bear witness to Philipsburg's strategic importance in St. Maarten's history. Fort Amsterdam, built in 1631 on a peninsula between Great Bay and Little Bay, was the first Dutch military outpost in the Caribbean. Unfortunately, it was soon captured by the Spanish, who made it their most important bastion east of Puerto Rico. The Spanish abandoned the fort in 1648, and since then it has remained in Dutch hands. All military operations ceased in the 19th century, although the fort was used as a signaling and communications station into the 1950s. A few walls of the original bastion remain, and the site provides an outstanding view of modern Philipsburg. Fort Willem, easily recognizable by its television transmission tower, lies just to the west of downtown. Built in 1801 by the British, it was taken over by the Dutch in 1816. It's an easy hike up to the fort, with a lovely panorama of Philipsburg and neighboring islands at the top.

Today, Philipsburg combines its historical legacy with 20th century excitement. Its waterfront has become a popular stop for cruise ships, and the town's many restaurants, cafes and night clubs offer entertainment well into the night.