The story of the Jerusalem, in what we call today the Lower City, began over 3,000 years ago, when King David left the city of Hebron for a small hilltop city known as Jerusalem, establishing it as the unified capital of the tribes of Israel. The Lower City and the City of David is the historical site of King David's palace. The narrow ridge is located southeast in the Old City, with the Kidron Valley to its east, is also the oldest part of Jerusalem. The city spread westwards to its current location only after the death of King Solomon.

Jerusalem is first mentioned in Egyptian texts in the 20th century BC. It was then ruled by a Canaanite people known as the Jesubites. Archeologists have found old Canaanite dwellings in the City of David that go back to the 3rd millennium BC. According to Joshua 10, the Israelite warrior defeated Adonitzedek, the Jebusite king of Jerusalem. But Joshua omitted to conquer the city and it continued as a Jesubite town. Some historians say because Jerusalem was such a small town that it was not worth the trouble.

However, when King David was looking for a fit place to build his new capital, he saw its potential. The ridge had its own water resource, the Gihon spring in the Kidron Valley, and the steep valleys on three sides made a natural defense. Moreover, it was unclaimed by any Israelite tribe and thereby clear of the danger of civil strife. Its location was on the border of Judah and northern Israel. The fact that the city was already inhabited, did not trouble David.

Historians still do not know how David took the city, by an organized siege or by lucky stealth. II Samuel 5:6-16 and I Chronicles 11:1-9 tell the story, in which the impression is raised that David's men, Joab first, crept through the city's water system as they conquered the city.

As soon as David settled in Jerusalem, he built a palace of wood and stone, executed by architects dispatched by the friendly king of Tyre. The palace lay on the crest of the city while the houses stretched down the slope. This enabled David to see Bathsheba bathing from the roof of his palace.