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Toronto isn't the capital of Canada, it's only a provincial capital. Ottawa is the federal capital. Both are located in the province of Ontario.

Before Ottawa became the national capital, there was no fixed city. The capital would move between two English speaking cities (Toronto and Kingston) and two french speaking ones (Montreal and Quebec City). Ottawa was eventually chosen because it was further from the US border and a more difficult target if there was ever a US attack. It was also located on a major river that flows downstream to other cities. It was strategically the best located for the needs of the time.

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