It exists even today and is known as the "Pointe de Linhares" and at the time it was constructed, was the longest bridge in existence. Around this time, against the backdrop of the decline of Old Goa, the idea of Panjim becoming the Capital of Goa slowly gained momentum.

On December 1 1759, the then Viceroy, Dom Manuel de Saldanha de Albuquerque, Count of Ega, shifted his residence from Panelim (near Old Goa) to Panjim. He moved to the newly re-modeled Adil Shah Fort, since known as "Idalcao's Palace" . The "Father of Panjim" is a title that is said to belong to the Viceroy, Dom Manuel de Castro de Portugal ( 1826-1835 ).

He began the process of slowly reclaiming land, initiated public projects, drainage systems and was also responsible for many of its government buildings and set the stage for Panjim to evolve into a magnificent city. By a royal decree on March 22, 1843 its status was elevated to a "City" and became the capital of Goa and was called "Nova Goa". The city was electrified in 1931. Over time it has undergone many changes under different administrations.

There are two old sections of the city existing today, one called "Fontainhas" and the other "Sao Tome". The hillock overlooking the city is called "Altinho".

Today, It is not only the state capital, but also an educational, commercial and cultural center of Goa. The Goa Medical College used to be situated here (since moved to Bambolim ) and so does the Goa College of Pharmacy, the Goa College of Art, and the Government Polytechnic. The Dhempe College of Arts and Sciences is situated in nearby Miramar. Some of the important parts of the city are discussed separately in the links below. It boasts of a cultural center-The Kala Academy, and a number of theater complexes.