 When the United States Congress established the Washington Territory on March 2, 1853, Governor Isaac Stevens chose Steilacoom as the seat of Pierce County.Steilacoom had the first jail in Washington and the first sawmill.The City of Lakewood has developed next to it, and the city is home to one of the two major state-run mental health facilities, Western State Hospital, on the site of what was once Fort Steilacoom.