Lincoln, Nebraska The city of Lincoln is the capital of the Cornhusker State, Nebraska. Lincoln is located in the southeastern part of the state, about 60 miles (100 kilometers) southwest of Omaha. It lies in a shallow basin about 1,160 feet (355 meters) above sea level. Salt Creek and its tributaries thread through the basin. Lincoln serves as a center for educational, cultural, and religious institutions. The city also developed as the trade center for a wide agricultural area. In the city are the buildings that house the various departments of the city, county, and state governments, the state mental and orthopedic hospitals, and the state penitentiary. Also located in Lincoln are a vete