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The classical Venetian boat is the gondola, although it is now mostly used for tourists, or for weddings, funerals, or other ceremonies, due to its cost. Most Venetians now travel by motorised waterbuses ("vaporetti") which ply regular routes along the major canals and between the city's islands. The city also has many private boats. The only unmotorized gondolas still in common use by Venetians are the traghetti, foot passenger ferries crossing the Grand Canal at certain points without bridges.

The city was founded as a result of the influx of refugees into the marshes of the Po estuary following the invasion of northern Italy by the Lombards in 568. In the mid-8th century, the Venetians resisted the empire-building efforts of Pepin III and remained subject to the Byzantine Empire, at least theoretically. As the community continued to develop and as Byzantine power waned, however, an increasingly anti-Eastern character emerged, leading to the growth of autonomy and eventual independence. Venice was a city state (an Italian thalassocracy or Repubblica Marinara, the other three being Genoa, Pisa, and Amalfi). Its strategic position at head of the Adriatic made Venetian naval and commercial power almost invulnerable.

The development and importance of the Rialto market on the eastern bank increased traffic on the floating bridge. So it was replaced around 1250 by a wooden bridge. This structure had two inclined ramps meeting at a movable central section, that could be raised to allow the passage of tall ships. The connection with the market eventually led to a change of name for the bridge. During the first half of the 15th century two rows of shops were built along the sides of the bridge. The rents brought an income to the State Treasury, which helped maintain the bridge.

Venice is served by the newly rebuilt Marco Polo International Airport, or Aeroporto di Venezia Marco Polo, named in honor of its famous citizen. The airport is on the mainland and was rebuilt away from the coast so that visitors now need to get a bus to the pier, from which watertaxi or Aliliguna waterbus can be used.

Some recent studies have suggested that the city is no longer sinking, but this is not yet certain; therefore, a state of alert has not been revoked. In May 2003, Silvio Berlusconi, the Italian Prime Minister, inaugurated the "Moses" project, which will lay a series of 79 inflatable pontoons across the sea bed at the three entrances to the lagoon. When tides are predicted to rise above 110 centimetres, the pontoons will be filled with air and block the incoming water from the Adriatic sea. This challenging engineering work is due to be completed by 2011.

After 1070 years, the Republic lost its independence when Napoleon Bonaparte on May 12, 1797, conquered Venice during the First Coalition. The French conqueror brought to an end the most fascinating century of its history: It was during the "Settecento" that Venice became perhaps the most elegant and refined city in Europe, greatly influencing art, architecture, and literature. Napoleon was seen as something of a liberator by the city's Jewish population. He removed the gates of the Ghetto and ended the restrictions on when and where Jews could live and travel in the city.

One of the ceremonial duties of the doge was to celebrate the symbolic marriage of Venice with the sea. This was done by casting a ring from the state barge, the Bucentaur, into the Adriatic. In its earlier form this ceremony was instituted to commemorate the conquest of Dalmatia by Doge Pietro II Orseolo in 1000, and was celebrated on Ascension Day. It took its later and more magnificent form after the visit of pope Alexander II and the Holy Roman Emperor Frederick I to Venice in 1177. On state occasions the Doge was surrounded by an increasing amount of ceremonial, and in international relations he had the status of a sovereign prince.

By the eighteenth century, the Serene Republic was largely a shadow of its former glory, although it continued to rule over Venetia, the Adriatic littoral, and the Ionian Islands. In 1797 it was invaded by the French troops of General Napoleon Bonaparte, who partitioned the republic between France and the Austrians.

Though Venice was famous for its navy, its army was equally effective. In the 13th century, most Italian city states already were hiring mercenaries, but Venetian troops were still recruited from the lagoon, plus feudal levies from Dalmatia and Istria. In times of emergency, all males between seventeen and sixty years were registered and their weapons were surveyed, with those called to actually fight being organized into companies of twelve. The register of 1338 estimated that 30,000 Venetian men were capable of bearing arms; many of these were skilled crossbowmen. As in other Italian cities, aristocrats and other wealthy men were cavalrymen while the city's conscripts fought as infantry.