At the start of the Civil War, Arlington which sits on the bank of the Potomac River across from Wash DC, was General Robert E Lee's home. The home and property actually belonged to Lee's wife Mary Custis Lee who had inherited it from her father.

As the war progressed Mary Lee fled Arlington ahead of Union troops which began occupying the grounds. Late in the war Congress started looking for suitable sites for more cemeteries, and Arlington was chosen as one. Many believe that turning Arlington into a cemetery was mainly about punishing General Lee for leading the Confederate Army. Lee's family fought for decades to reclaim the property and finally succeeded. On March 3,1883 the U.S.Supreme Court ruled that Arlington had been illegally confiscated and it was returned to the Lee family. Arlington was then sold back to the U.S. government for $150,000.00 which would be more than 3 million in today's money.

More Info: en.wikipedia.org