In 1790 when the federal district was originally created, two states gave land to create the District of Columbia. The Commonwealth of Virginia gave up (or ceded) parts of the western bank of the Potomac river, including the city of Alexandria. The state of Maryland also ceded land on the eastern bank of the Potomac river, including the town of Georgetown. However, in the 1840's the land on the eastern bank of the Potomac river was retroceded to Virginia.
Today, Washington DC is on land that was formerly part of Maryland.
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On July 16, 1790, the Residence Act provided for a new permanent capital to be located on the Potomac River, the exact area to be selected by President Washington. Washington chose to locate the capital on both sides of the Potomac and both Virginia and Maryland ceded land to Congress.
In 1846 Congress agreed to return all the District's territory south of the Potomac River to the Commonwealth of Virginia.