History of Albany, New York (1784–1860) 1807, Robert Fulton initiated a steamboat line from New York to Albany, the first successful enterprise of its kind. By 1810, with 10,763 people, Albany was the 10th largest urban place in the nation. The town and village known as "the Colonie" to the north of Albany was annexed in 1815. In 1825 the Erie Canal was completed, forming a continuous water route from the Great Lakes to New York City. Unlike the current Barge Canal, which ends at nearby Waterford, the original Erie Canal ended at Albany; Lock 1 was located north of Colonie Street. The Canal emptied into
Chenango Canal in a water highway to what would become the Midwestern United States, connecting to the Great Lakes at Buffalo. It connected the Great Lakes to the Hudson River and then to the port of New York City. The Erie made use of the favorable conditions of New York's unique topography which provided that area with the only break in the Appalachian range—allowing for east-west navigation from the Atlantic coast to the Great Lakes. The canal system gave New York State a competitive advantage, helped New York City develop as an international trade center, and allowed Buffalo to grow from just