In politics a capital (also called capital city or political capital) is located by the following:
Usually a capital of a country or other political entity is the city or town that contains the government.
Usually the location of the capital is stated in law.
Often a capital is a center of important activity.
In a monarchy, often a capital is wherever a monarch's court is (which can move from palace to palace).
A country or political entity may have more than one official capital at any given point in time. It may consist of or be separate from the actual seat of government. It also may move about seasonally.