Rome was founded between 1000-500 BC by Latins on seven hills along the Tiber River in central Italy due to its fertile soil and strategic location. Originally ruled by Etruscan kings, Rome became a republic in 509 BC with citizens electing leaders like consuls and tribunes. Rome expanded its power by conquering neighboring peoples and defeating rivals like Carthage in the Punic Wars, allowing Rome to control the entire Italian peninsula and become the dominant power in the Mediterranean by 146 BC.