Janurary 19 - The first legislature of the Alabama Territory convenes at the Douglass Hotel in the territorial capital of St. Stephens. Attendance is sparse with twelve members of the House, representing seven counties, and only one member of the Senate conducting the business of the new territory.

The Alabama, the area's first steamboat, constructed in St. Stephens.

Cedar Creek Furnace, the state's first blast furnace and commercial pig-iron producer, established in present-day Franklin County.

November 21 - Cahaba, located at the confluence of the Alabama and Cahaba Rivers, is designated by the territorial legislature as Alabama's state capital. Huntsville would serve for a short time as the temporary capital. The selection of Cahaba was a victory for the Coosa/Alabama River contingent, which won-out over a Tennessee/Tombigbee Rivers alliance group that wanted to place the capital at Tuscaloosa. The power struggle would continue between the two sections of the state; in 1826 the capital was moved to Tuscaloosa, but in 1847 it was moved to the Alabama River at Montgomery.

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