The Residence Act, signed by George Washington in 1790, established a permanent U.S. capital on the Potomac River.
Washington signed the law on July 16, 1790. Its official title was An Act for establishing the temporary and permanent seat of the Government of the United States. The act authorized a federal district along the Potomac and gave the president power to select the precise location.
The law was part of the Compromise of 1790, an agreement involving James Madison, Thomas Jefferson, and Alexander Hamilton. Southern support for assuming state debts helped secure agreement for placing the permanent capital on the Potomac. Philadelphia was designated the temporary capital while the new federal district was prepared.
The act did not initially name the future city Washington, D.C., nor did it specify the exact building sites. Washington selected a location near Georgetown, and Pierre Charles L'Enfant later designed the city's plan. The federal government moved to the new capital in 1800.