In fact, when it was formed in 1838, the Iowa Territory was over times larger the state's current size. And just how close did we get to having 'Mega Iowa' as a full blown state? Get our free mobile appCredit: Canva Credit: CanvaOn the 4th of July, 1838, the 'Iowa Territory' was officially established. Nearly 2/3 of Minnesota was within the Iowa Territory, while large swaths of the Dakotas were as well. All in all, the Iowa Territory encompassed over 194,000 square miles, dwarfing the current state of Iowa, which is around 56,000 square miles today.