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The palatial chateau was initially constructed as a simple hunting lodge for Louis XIII in 1624. In 1660, Louis XIV, coming to majority and taking on full royal powers, was casting about for a site near Paris but away from the tumults of the city. He had grown up in the disorders of the civil war between rival bands of aristocrats called the Fronde and wanted a site where he could organize and completely control a government of France centered upon his person. He settled on the lodge and decided to convert it into a palace; this was largely completed by 1688. The team of architect Louis Le Vau, decorator Charles Le Brun and garden designer (André Le Nôtre had been assembled by Louis' own finance minister Nicolas Fouquet at Vaux-le-Vicomte, whose grand success there was his undoing.
Louis XIV, in building the palace, was intent on more than merely outdoing Vaux-le-Vicomte. Versailles became the home of the French nobility and the location of the royal court. Louis XIV himself lived there, and symbolically the central room of the long extensive symmetrical range of buildings was the King's Bedroom (the Chambre du Roi), which itself was centered on the lavish and symbolic state bed, set behind a rich railing not unlike a communion rail. All the power of France emanated from this center: there were government offices here; as well as the homes of thousands of individuals. By insisting that nobles spend time at Versailles, Louis kept them from countering his efforts to centralize the French government in an absolute monarchy.

While the Palace was grand and luxurious, it was also impossibly expensive to maintain. Historians estimate that maintaining the Palace, including the care and feeding of its staff and the Royal Family, consumed as much as 25% of the entire national income of the country of France.
After Louis XIV, several smaller buildings were added to the Versailles area by Louis XV and Louis XVI including the Grand Trianon, the Petit Trianon, and the Hamlet of Marie Antoinette, which, in a way, is one of the world's first open air museums.
After the French defeat in the Prussian-French war, the castle was the main headquarter of the German army from October 5, 1870 until March, 13, 1871, and the German Empire was proclamaimed here on January 18.

The ravages of war and neglect over the centuries have left their mark on the palace and its huge gardens. Modern French governments of the post World War II era have sought to repair these damages. They have on the whole been successful, but some of the costlier items, like the vast array of fountains, have yet to be put back completely in service. As spectacular as they might seem now, they were even more extensive in the 18th century. The 18th century waterworks which fed the fountains was probably the biggest mechanical system of its time. The water came in from afar on monumental stone aqueducts, which have long ago fallen in disrepair or been torn down.