After maintaining a stable population for quite some time, Palestine was suggested to become the new state capital, as being situated on a high bluff over the White River.The father of Joseph A. Wright, a former governor of Indiana, cut and laid the stone for the foundation.As one of the most flourishing towns in Southern Indiana, the city had a population of 600–700 in the 1820 United States census.The city of Palestine was plagued by malaria, leading to a steep decline in population over the next decade.Shortly afterwards, in 1825, the county seat was relocated to the city of Bedford, where the courthouse stands today.