Prescott was founded in 1864 and named in honor of historian William H. Prescott. The original location of Prescott was established by Governor John Noble Goodwin along Granite Creek where gold was found. This peaked the interest of President Lincoln who was searching for a potential way to fund the North during the Civil War. President Lincoln wanted the capital in the northern part of Arizona so Prescott became the territorial capital until 1867. Prescott regained the capital status in 1887. Later in 1889, the capital was moved to Phoenix by the Arizona Legislature.
Historical preservation is very important to Prescott who has over 600 buildings listed on the National Register of Historic Places.
Governor Goodwin engineered the design of the downtown square. Northerners and Midwesterners inhabited this new capital and brought their ideals with them. Victorian style peaked roof homes were built instead of the adobe composition that was more conventional in the Southwest. Prescott became the most Midwestern looking city in all of Arizona.
The Governor's Mansion is now preserved at the Sharlot Hall Museum. Sharlot Hall Museum was named after historian and poet Sharlot M. Hall in 1928. It is the largest museum in the central region of Arizona and currently displays the unique regional traditions of Prescott through exhibits, outdoor theatre performances, and living historical achievements.
The core of the economy was based on mining and cattle ranching.