By 1895, the Santa Fe, Prescott and Phoenix Railroad (also known as the “Peavine”) connected Prescott's mining area with the Southern Pacific line. The access to the railroad bolstered the mercantile sector of the local economy and led to the establishment of several new dry goods and mining supply businesses. Communication and utilities improved along with transportation. An electric light plant was built in 1889 and telephones arrived shortly thereafter. The year 1889 also marked the year that the capital was moved to Phoenix. In spite of this political loss, Prescott continued to prosper and develop as the 19th century drew to a close.
