The Iowa Territory was established on July 4, 1838, when it was separated from the Wisconsin Territory. It included present-day Iowa and parts of Minnesota and South Dakota. The territory was created to facilitate settlement and governance in the region, which was primarily inhabited by Native American tribes. The first capital of the Iowa Territory was Burlington, but it later moved to Iowa City in 1841. The territory played a significant role in the westward expansion of the United States, attracting settlers and contributing to the development of agriculture and infrastructure in the area.