The term CITY BORDERING BERLIN can be solved by the seven-letter word POTSDAM. Potsdam is a city located in the German state of Brandenburg, which borders Berlin. It is the capital of the state and is known for its many parks and palaces. The city has a long history, having been founded in the 13th century. It was the residence of Prussian kings and German Kaisers, and was heavily damaged during World War II. Today, it is a popular tourist destination, with many attractions such as Sanssouci Palace and the Dutch Quarter.