Improvements in the capital were incrementally implemented, such as the steam boat in 1835, whale oil public lighting in 1837, gas lamps in 1847, water supply in 1861, the Niterói Railroad, linking the city with the wider state in 1872, and electric streetcars in 1883.

In 1894, due to a series of revolts and attacks on the city, the capital was transferred to Petrópolis. However, Niterói was reinstated as capital in 1903, which marked a period of important urban interventions.

In 1906 electric lighting and drains were installed and electric trams began to replace donkey-pulled ones. The Cassino Icaraí (Icaraí Casino) rivaled the Cassino da Urca (Urca Casino) in Rio de Janeiro city, featuring a hotel, restaurant and gambling rooms, as well as great names in Brazilian and Latin American music.