Why was the District of Columbia created?

The District of Columbia, often referred to as Washington or D. C. was created by the Constitution of the United States to serve as the capital of the United States of America. The Residence Act of July 16, 1790 approved its creation along the Potomac River on the country's East Coast. The City of Washington was founded in 1791 and it was named after George Washington, the first President of the United States and Founding Father.

It was a compromise that allowed the National Bank to be created.