According to legend, Carthage was founded by the Phoenician Queen Elissa (better known as Dido) sometime around 813 BCE. The City (in modern-day Tunisia, North Africa) was originally known as Kart-hadasht(new city) to distinguish it from the older Phoenician city of Utica nearby. The Greeks called the city Karchedon and the Romans turned this name into Carthago. Originally a small port on the coast, established only as a stop for Phoenician traders to re-supply or repair their ships, Carthage grew to become the most powerful city in the Mediterranean before the rise of Rome.
After the fall of the great Phoenician city of Tyre to Alexander the Great in 332 BCE, those Tyrians who were able to escape fled to Carthage with whatever wealth they had. Since many whom Alexander spared were those rich enough to buy their lives, these refugees landed in the city with considerable means and established Carthage as the new center of Phoenician trade. The Carthaginians then drove the native Africans from the area, enslaved many of them, and exacted tribute from the rest. From a small town on the coast, the city grew in size and grandeur with enormous estates covering miles of acreage. Not even one hundred years passed before Carthage was the richest city in the Mediterranean. The aristocrats lived in palaces, the less affluent in modest but attractive homes, while tribute and tariffs regularly increased the city's wealth on top of the lucrative business in trade. The harbor was immense, with 220 docks, gleaming columns which rose around it in a half-circle, and was ornamented with Greek sculpture. The Carthaginian trading ships sailed daily to ports all around the Mediterranean Sea while their navy, supreme in the region, kept them safe and, also, opened new territories for Tradeand resources through conquest.Via http://www.ancient.eu.com/carthage/