The Palatine Hill is like a treasure trove of archaeology for your children to explore. The Palatine Hill itself is the central hill of the seven hills of Rome. You buy your ticket at the foot of the hill and then climb up a fairly gentle incline to explore the hill (your ticket covers all three nearby sites - the Palatine Hill, the Roman Forum and the Colosseum). The hill is scattered with different ruins, archaeological finds, and interesting museums, and there is easy access to all of these. There are tunnels, caves, and many bits of columns, statues, and ancient buildings. There is plenty of shade on the hill from cypress and other trees, so it is a good place to stop and have a rest or eat a picnic.
The Palatine Hill is the location of the mythical 'Lupercal', where legend says that Romulus and Remus were brought up in a cave by a wolf, and where the city of Rome was founded. This is one of the most ancient parts of the city, and it is believed that people have lived here since the tenth century BC. From the Palatine Hill is an easy walk down towards the Roman Forum, for the next part of your exploration of Rome.
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