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The Oregon Territory is the name applied both to the unorganized Oregon Country claimed by both the United States and Britain , as well as to the Organized U.S. territory formed from it that existed between 1848 and 1859 . The Territory of Oregon was organized on August 14 , 1848 by Act of Congress out of the U.S. portion of the Oregon Country below the 49th Parallel . It originally included all of the present-day states of Idaho , Oregon and Washington as well as Montana , west of the Continental Divide , and Wyoming , west of the Continental Divide and north of the 42nd Parallel —the northern border of the Mexican Cession . The first territorial capital was in Oregon City . The capital was later moved Salem in 1851 . In 1853 , the portion of the territory north of the lower Columbia River and north of the 46th parallel east of it was organized into the Washington Territory . In February 14 , 1859, the territory entered the Union as the State of Oregon within its current boundaries. The remaining eastern portion of the territory (i.e., the portions in present-day southern Idaho and western Wyoming) was added to the Washington Territory. |
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