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In 1807, a group of Indiana farmers selected the site for the new city of Indianapolis. The site was on the west side of the river, adjacent to what is now downtown Indianapolis. The first permanent residents of Indianapolis were men from Connecticut and New York who arrived in 1814. The city grew rapidly and by 1827 it had become an organized town with a government and a market place. In that year, Indianapolis became the capital of Indiana. The Erie Canal was completed in 1825 and made Indianapolis one of the most important transportation hubs in America. It also opened up new markets for local businesses and contributed to Indy's growth as a manufacturing center. By 1850, more than 12,000 jobs had been created in Indianapolis through industry and commercial activity. During its early years, Indianapolis was known as "the Granite City" because of its high quality granite used to build many public buildings including schools, churches and other civic structures. However, over time this nickname began to be overshadowed by larger cities such as Chicago or Detroit which had similar populations at that time. However, during World War II there was significant growth in industrial production inINDY due to wartime demand for munitions products. This led to increased emphasis on research and development within corporate headquarters located in downtown Indy which helped lead to significant job creation throughout the years since then-as has happened elsewhere during peacetime periods when large businesses have been created outside traditional urban cores around major metropolitan areas