Portsmouth is an independent city located in the Commonwealth of Virginia. As of the 2000 census, the city had a total population of 100,565, but a 2006 census estimate showed the city's population had increased to 101,377.

The Norfolk Naval Shipyard, often called the Norfolk Navy Yard, is a historic and active U.S. Navy facility which is actually located in Portsmouth, despite its name. The shipyard builds, remodels, and repairs the Navy's ships of all types.

Directly opposite Norfolk, the city of Portsmouth also has miles of waterfront land on the Elizabeth River as part of the harbor of Hampton Roads. A bright spot in Portsmouth's economic outlook is an additional new marine terminal for transloading of container ships scheduled to open in 2007 in the West Norfolk section which will access Portsmouth's excellent railroad and Interstate highway connections to the rest of Virginia and beyond.

One of the older of the Seven Cities of Hampton Roads, in the early 21st century, Portsmouth was undergoing moderate urban renewal in the downtown area. However, population had been declining and there was no room for expansion, as it is surrounded by water and other cities of South Hampton Roads.

A Virginia state legislator recently proposed a plan by which Portsmouth would merge with its neighbor cities of Norfolk and Suffolk  After a cold reception from Suffolk, the legislator changed the plan so that it would merge only Portsmouth and Norfolk.  The plan, in any form, is enthusiastically embraced by many in Portsmouth.

The city has a radically limited tax base.  A large portion of the city is controlled by the U.S. Navy; when Navy facilities are combined with schools, churches, and other tax-exempt entities, over half of Portsmouth's assessed valuation is off the tax rolls. A new marine terminal for container ships scheduled to open in 2007 in the West Norfolk section. Virginia has funded millions of dollars in railroad and transportation improvements to serve it.