Tawau (Malaysian pronunciation: [ˈta wau], Jawi: تاواو, Chinese: 斗湖; pinyin: dǒu hú) formerly known as Tawao, is the capital of the Tawau District in Sabah, Malaysia. It is the third-largest city in Sabah, after Kota Kinabalu and Sandakan. It is located on the Semporna Peninsula in the southeast coast of the state in the administrative centre of Tawau Division, which is bordered by the Sulu Sea to the east, the Celebes Sea to the south at Cowie Bay and shares a border with North Kalimantan, Indonesia. The town had an estimated population as of 2010, of 113,809, while the whole municipality area had a population of 397,673.Before the founding of Tawau, the region around it was the subject of dispute between the British and Dutch spheres of influence. In 1893, the first British merchant vessel sailed into Tawau, marking the opening of the town's seaport. In 1898, the British set up a settlement in Tawau.