Capital city: The capital city of Hawaii is Honolulu, located on the island of Oahu. Bordering states: Hawaii has no bordering states because each island is surrounded by water. The closest state is California, however. Hawaii's Flag: The designs on Hawaii’s unique flag each represent something. The white, blue, and red stripes represent each of the 8 islands of Hawaii. The British symbol at the top left of the flag represents their history with Britain.