 As Indiana Territory grew in population and development, it was divided in 1805 and again in 1809 until, reduced to its current size and boundaries, it retained the name Indiana and was admitted to the Union in 1816 as the nineteenth state.The newly established state government set out on an ambitious plan to transform Indiana from a segment of the frontier into a developed, well-populated, and thriving state.State founders initiated an internal improvement program that led to the construction of roads, canals, railroads, and state-funded public schools.