George Washington signed the Residence Act on July 16, 1790, establishing the future site of the United States capital.
The law provided for a permanent seat of government along the Potomac River. It authorized commissioners to survey and develop a federal district no more than ten miles square. The location was selected as part of a political compromise involving Thomas Jefferson, James Madison, and Alexander Hamilton.
The Residence Act also designated Philadelphia as the temporary capital while the new federal city was built. The government moved from New York City to Philadelphia in December 1790, then moved to Washington, D.C., in 1800.
The act did not create a fully developed city immediately. President Washington selected the site and appointed commissioners, while Pierre Charles L’Enfant later prepared a plan for the capital. The district originally included land ceded by Maryland and Virginia; the Virginia portion was returned in 1846.