An area of thunderstorm activity developed on July 28 about 100 miles (160 km) east of the Bahamas which was associated with a weak low pressure system. It moved north-northeastward, into poor environmental conditions which left the system disorganized. However, conditions then were forecasted to become better for development, and by July 29 the National Hurricane Center stated that it had "potential for tropical or subtropical development." On July 30, the low passed to the west of Bermuda as it continued moving northeastward, under the effects of a large mid-latitude trough. The system contained an exposed low-level circulation, which from time to time passed under a thick area of convection to its northeast. By early on July 31, ship reports and QuikSCAT observations detected winds of 35 mph (55 km/h), and the center was well-involved enough with the convection for the National Hurricane Center to name it as "Tropical Depression Three" while it was located about 270 miles (435 km) north-northwest of Bermuda, or about 445 miles (710 km) south-southeast of Chatham, Massachusetts.