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794 the capital was removed to the site of the present city of Kiōto. It received the name of Heian-jō, or the "City of Peace." The Mikados continued to make it their residence until the revolution of 1868, but the term "Heian period" is restricted to the time when Kiōto was the real seat of government, namely, about four centuries. When Yoritomo, at the end of this period, established the Shōgunate, or rule of the military caste, at Kamakura, in the east of Japan, all practical authority was transferred thither.

With the founding of Heian-jō (Kiōto) the wave of progress which received its impulse from the combined influences of Chinese learning and the Buddhist religion reached its height, and a period of great material prosperity ensued. But the usual results were not long in manifesting themselves. The ruling classes became indolent and luxurious, and neglected the arts of government