In 1886, a new territorial capitol was built on the south side of the Santa Fe River. Built in anticipation of New Mexico's statehood, the building replaced the Palace of the Governors as the territorial capitol. Four stories high, the monumental building was topped by colossal bronze statues representing Liberty, Justice, Commerce and Industry. However, six years later, on the night of May 12, 1892, a mysterious fire broke out, completely destroying the structure. Many of the residents of Santa Fe disliked the new building intently and arson was suspected. (It was later discovered that all the fire hoses in the building had been cut. Governor Bradford L. Prince, whose residence was across the lawn from the capitol, personally saved thousands of documents from the fire.

The next capitol building was completed in 1900 for the incredibly low cost of $140,000, and was a three story, silver domed structure. It served in that style for another fifty years and was the state capitol when, at 1:35 P.M., January 6, 1912, President Taft signed the proclamation admitting New Mexico as the 47th state in the Union. He then turned to the delegation and said, "Well, it is all over. I am glad to give you life. I hope you will be healthy."

Over the intervening years, various additions were built adjacent to the capitol building and, in 1950, a major renovation got underway to unify the architectural appearance of all the buildings in the complex to the territorial style. At that time, the dome was removed and the building is now known as the Bataan Memorial Building.