Taunggyi ( tàʊɰ̃dʑí mjo̰; Shan: weŋ˥ ton˧˧˨ ti˥; Pa'O: ) is the capital and largest city of Shan State, Myanmar (Burma) and lies on the Thazi-Kyaingtong road at an elevation of , just north of Shwenyaung and Inle Lake within the Myelat region. Taunggyi is the fifth largest city of Myanmar, and has an estimated population of 380,665 as of 2014. The city is famous for its hot air balloon festival held annually on the full moon day of Tazaungmon. The name Taunggyi means "huge mountain" in the Burmese language, and is named after the ridge on the east of the city, part of the Shan Hills system, whose prominent high point is called Taung-chun or "The Spur." Locally this spur is popularly known as Phaya Taung. The ridge has a more prominent and more popular feature known as Chauk Talone, meaning the Craigs. Prior to British colonisation, Taunggyi was a small village of a few huts. The area lay on a wide shoulder of the Sittaung Hills of the Shan Hills and was populated by the Shan people at the time. The signs of the original village of Taunggyi are long gone, but nearby villages can still be discerned quite easily. During British occupation, the town became the chief city and capital of the Southern Shan States. Taunggyi's modern development began in 1894, when the British moved their administrative offices from Maing Thauk (Fort Stedman) on the eastern shores of Inle Lake to the higher elevation of Taunggyi, for health and geographical reasons. Although geographically within the state of Yawnghwe, the town was denoted as a "notified area" by the British, exempt from the Sawbwa's administration. By 1906, there existed a thousand houses. Because of civil unrest throughout the Shan States during the early 1900s, Taunggyi served as the chief garrison for military police. Taunggyi also served as a supply centre for the Shan States, and catered to persons of many nationalities. Taunggyi is at an elevation of above sea level.