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The city was founded in 1856 as the village of Lancaster on the wild salt marshes of what was to become Lancaster County.

Lincoln Public Schools during the school year of 2016–17 provided support for approximately 3,200 students from 118 countries, who spoke 68 different languages.Volga-German immigrants from Russia settled in the North Bottoms neighborhood and as Lincoln expanded with the growth in population, the city began to annex towns nearby. College View, incorporated in 1892, was annexed in 1929. The airfield was located near Havelock; or to the west of where the North 48th Street Small Vehicle Transfer Station is located today.Union College, a Seventh Day Adventist institution, was founded in College View in 1891. Havelock actively opposed annexation to Lincoln and only relented due to a strike by the Burlington railroad shop workers which halted progress and growth for the city. The Omaha-Denver Trans-Continental Route Association in 1911, with support from the Good Roads Movement, established the Omaha-Lincoln-Denver Highway (O-L-D) through Lincoln. Arrow Aircraft and Motors declared bankruptcy in 1939 and Arrow Airport closed roughly several decades later.The Goodhue designed capitol was constructed in four phases, with the completion of the fourth phase in 1932.The worldwide economic depression of 1890 saw the reduction of Lincoln's population from 55,000 to 37,000 by 1900. Arrow Airport was established around 1925 as a manufacturing and test facility for Arrow Aircraft and Motors Corporation, primarily the Arrow Sport.An occasional buffalo could still be seen in the plat of Lincoln in the 1860s. In the fall of 1859, the village settlers met to form a county.

A caucus was formed and the committee, which included Captain Donovan, selected the village of Lancaster to be the county seat. After the passage of the 1862 Homestead Act, homesteaders began to inhabit the area. The township of Lancaster was renamed Lincoln with the incorporation of the city of Lincoln on April 1, 1869.

The city is the economic and cultural anchor of a substantially larger metropolitan area in the southeastern part of the state called the Lincoln Metropolitan and Lincoln-Beatrice Combined Statistical Areas.

The statistical area is home to 348,720 people, making it the 105th-largest combined statistical area in the United States.

The village of Lancaster was chosen, in part due to the salt flats and marshes. Disregarding the original plat of the village of Lancaster, Thomas Kennard platted Lincoln on a broader scale.

The plat of the village of Lancaster was not dissolved nor abandoned; Lancaster became Lincoln when the Lincoln plat files were finished September 6, 1867.

Newcomers began to arrive and Lincoln's population grew.