The original building of Kensington Palace was built in the early 17th century for the Earl of Nottingham, and was known as Nottingham House.
http://en.wikipedia.org/wiki/Kensington_Palace
In 1689, the building known as Nottingham House was purchased from the builder's heir in this year. The reason for the purchase was that the King's asthma demanded a move away from the air of London to the cleaner country air. Following the purchase, the house was known as Kensington House.
http://www.rbkc.gov.uk/InterestingPlaces/KensingtonPalace/default.asp
During the reign of King William, Christopher Wren was engaged to make numerous additions and improvements to Kensington House. One of the most prominent of these was the re-orientation of the house to face west. Another was the addition of the 96-foot long gallery.
Wikipedia: Kensington Palace
Queen Mary II died of smallpox in Kensington Palace on this date.
http://en.wikipedia.org/wiki/Mary_II_of_England
During the reign of Queen Anne, several landscaping works were done at Kensington. An orangery was designed by either Christopher Wren or John Vanbrugh, and Henry Wise laid out 30 acres of gardens.
William III died at Kensington Palace of pneumonia caused by a broken collarbone sustained in a fall from his horse.
http://en.wikipedia.org/wiki/William_III_of_England
George I made further additions to Kensington Palace, such as the Cupola Room.
King George II died of an aortic dissection while sitting on a lavatory in Kensington Palace. He was the last reigning monarch to make his residence at Kensington Palace.
http://en.wikipedia.org/wiki/George_II_of_the_United_Kingdom
On this date, the future Queen Victoria was born in what is now the North Drawing Room of Kensington Palace.
http://en.wikipedia.org/wiki/Victoria_of_the_United_Kingdom
Victoria was christened by the Archbishop of Canterbury, Charles Manners-Sutton, in the Cupola Room of Kensington Palace.
Victoria was woken from her sleep in her apartments in Kensington Palace on this morning to learn that her uncle had died and that she was now the Queen of the United Kingdom.
Mary of Teck, the wife and queen of King George V of the UK, was born at Kensington Palace on this date. She was the daughter of Prince Francis, Duke of Teck, and Princess Mary Adelaide of Cambridge.
http://en.wikipedia.org/wiki/Mary_of_Teck
Mary of Teck, wife and queen of King George V of England, was christened in the Chapel Royal of Kensington Palace.
Upon her marriage to Prince Charles, Kensington Palace became the official London residence of Princess Diana. It remained so following her divorce and until her death.
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