The irrigation canals were restored for farming, and ranching and prospecting began in the surrounding area. The city quickly grew as an important trading center. Phoenix was incorporated as a city in 1881 and was made the territorial capital in 1889. It became the state capital when Arizona was admitted to the Union in 1912. Between 1950 and 1990 the population increased from 100,000 to 980,000.
Phoenix is a commercial and manufacturing center in an agricultural region.
Major industries include government, agricultural products, aerospace technology, electronics, air-conditioning, leather goods, and Indian arts and crafts. Mining, timbering, and tourism also contribute to the economy. The city of Phoenix is renowned as a leader in local government management and received the 1993 Bertelsmann Foundation award for the best-managed city in the world.