In 1836, Jerry and William Ford, two brothers from New York, plotted out a section of the floodplains south of the Grand River, naming the area "Biddle City." They then went back to New York to sell plots for the non-existent town, claiming the "city" had an area of 65 blocks and a church, as well as a public and academic square. A group of 16 settlers from Lansing, New York, bought plots in the settlement and, upon reaching the area, realized the virtues of Biddle City had been greatly exaggerated. Those that elected to stay and settle the area renamed it "Lansing Township" in honor of their home town in New York. Whether the Ford brothers were visionaries or scam artists is still a matter of debate in Lansing.

The city of Lansing didn't really begin to prosper or grow until 1847, when it was made the state capital. Detroit, the capital at the time, was located a little too close to British-controlled Canada for everyone's comfort. Detroit had been captured once during the War of 1812, and there was fear it might fall into British hands again, so the decision was made to move the capital to a safer location somewhere in Michigan's interior. A number of prominent cities, including Ann Arbor, Marshall, Jackson, and Calumet, lobbied hard for the designation as state capital. In the end, the Michigan House of Representatives grew tired of all the political wrangling and simply chose Lansing to bring the matter to a close.