Founded in 1584, Karlstad is known as 'the city of sunshine', in part because of its favourable climate, and in part because the city prides itself on its lively and welcoming atmosphere. Capital of the historic province of Värmland, Karlstad has been the venue for a number of important events in Swedish history, including the negotiations for the peaceful dissolution of the Union between Norway and Sweden in 1905.

Karlstad is built on a collection of islands and islets in the delta of the Klarälven river as it flows into lake Vänern (the largest body of water in Sweden, and the third largest in Europe). The city is surrounded by pine forests and farm land, and there are no fewer than 11 nature reserves within the municipality's borders.
A great fire swept through the city in 1865, razing it almost entirely to the ground. The Cathedral and the Bishop's residence are two of the few surviving buildings.