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
Thames and Severn Canal and remains the fourth longest. There were always problems with water supply, as no reservoirs were built, while the summit section near the tunnel ran through porous limestone, and there were constant difficulties with leakage. Competition from the railways took much of the canal's traffic by the end of the 19th century, and most of the canal was abandoned in 1927, the remainder in 1941. Since 1972, the Cotswold Canals Trust has been working to restore both the canal and the Stroudwater Navigation, so that it can again provide a navigable link between the Thames and the Severn. A number