Oregon's capital is Salem, which is a five-letter word. Salem is the third-largest city in Oregon and the state capital of Oregon. It is located in the center of the Willamette Valley alongside the Willamette River, which runs north through the city. Salem was founded in 1842 and became the capital of the Oregon Territory in 1851. It was officially incorporated as a city in 1857 and has since grown to become the political and cultural center of the state.