After the expansion of the New Mexico Territory in 1853 by the Gadsden Purchase, proposals for a division of the territory and the organization of a separate Territory of Arizona in the southern half of the territory were advanced as early as 1856. The first proposals for the Arizona Territory were not based on the current north-south division, but rather a division along an east-west line.
The proposals arose from concerns about the ability of the territorial government in Santa Fe to effectively administer the newly acquired southern portions of the territory.
In March 1862, the U.S. House of Representatives, now devoid of the southern delegates and controlled by Republicans, passed a bill to create the United States Arizona Territory using the north-south border of the 107th meridian. The use of a north-south border rather than an east-west one had the effect of denying a de facto ratification of the Confederate Arizona Territory. The house bill stipulated that Tucson was to be the capital. The final bill passed the Senate in February 1863 without the Tucson-as-capital stipulation, and was signed into law by President Abraham Lincoln on February 24, the date of the official organization of the US Arizona Territory. The first capital was Prescott, in the northern Union-controlled part of Arizona.
Arizona Territorial Governor John Noble Goodwin selected the original site of Prescott following his first tour of the new territory. Goodwin replaced Governor John A. Gurley, appointed by Abraham Lincoln, who died before taking office. Downtown streets in Prescott are named in honor of each of them. Goodwin selected a site 20 miles south of the temporary capital on the east side of Granite Creek near a number of mining camps. The territorial capital was later moved to the new site along with Fort Whipple, with the new town named in honor of historian William H. Prescott during a public meeting on May 30, 1864. Robert W. Groom surveyed the new community, and an initial auction sold 73 lots on June 4, 1864. By July 4, 1864, a total of 232 lots had been sold within the new community. Prescott was officially incorporated in 1883.
Prescott served as capital of Arizona Territory until November 1, 1867, when the capital was moved to Tucson by act of the 4th Arizona Territorial Legislature. The capital was returned to Prescott in 1877 by the 9th Arizona Territorial Legislature. The capital was finally moved to Phoenix on February 4, 1889, by the 15th Arizona Territorial Legislature.
The boundaries for the original territory, if they had kept their same size, would make Las Vegas part of Arizona. However, in 1866, the northwestern section was annexed to the state of Nevada, and the territory maintained its current size. The following year, the capital was moved to Tucson, and in 1889 it was moved to the city of Phoenix.
The Arizona territory was admitted to the Union as the 48th state on February 14, 1912.
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