Lansing becomes the state capital In 1805, Detroit was named the Territory of Michigan's first capital, but the state constitution said that the legislature could name a new permanent capital in 1847. After alot of arguing, they chose Lansing because of its central location. At the time, Lansing only had a sawmill and a few cabins. New factories and businesses came to the new capital. When Lansing was named the state capital, its name was almost changed to Michigan. That would have made it Michigan, Michigan.