On July 15, 1741, Alexei Chirikof discovered Alaska at the location of present day Sitka. In 1799 Czar Paul I chartered the Russian-American company with a monopoly over trade in Alaska and the power to administer its affairs in Alaska. It was headquartered in Sitka, which became the Russian Capitol of Alaska. It was in Sitka on October 18, 1867 that the United States bought Alaska from Russia for 7.2 million. Sitka remained the capitol until 1912 when it was moved to Juneau.
Sitka is located on Baranof island in the panhandle of Alaska. Mountains drop steeply into the ocean along most of the coastline in this area. A river delta provided a more level area for the founding of Sitka. The city is now spread along several miles of the forested slopes.
Tlingit Indians occupied Sitka at the time of it's discovery. At first they tolerated the colonists, but fighting began which ended in 1804 with the Siege of Shiskeenue, where the Russians defeated them. The Tlingit Indians are still a major segment of the population in Sitka.
Sitka is officially known as the City and Borough of Sitka, the government of the two being combined. The whole 100 mile length of Baranof Island is technically part of the city. However the Tongass National Forest covers all the island except the inhabited area around Sitka. The rest of the island is virtually uninhabited.
For More Information:
See Wikipedia's Sitka article.