Fondly referred to as "the river city," Iowa City is the home of the University of Iowa and the state's first capital. Founded to become Iowa's territorial capital, Iowa City boomed as a backwoods metropolis, with the Territorial Legislative Assembly meeting here for the first time in 1841. A Doric stone capitol was erected, but with the shift of population, the legislators moved to Des Moines in 1857. As a conciliatory gesture to Iowa City, they selected it as the site of the new university. The university was given then "Old Capitol" and 10 acres of land for its use.

The university is the major enterprise, but the community is also important as one of the top medical centers in the country, the key city of hog, cattle, and grain-raising in Johnson County, and an industrial center.