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
Rideau Canal canal to Kingston and out into Lake Ontario. The objective was to bypass the stretch of the St. Lawrence bordering New York; a route which would have left British supply ships vulnerable to an attack or a blockade of the St. Lawrence. The canal also served a commercial purpose. The Rideau Canal was easier to navigate than the St. Lawrence River because of the series of rapids between Montreal and Kingston. As a result, the Rideau Canal became a busy commercial artery from Montreal to the Great Lakes. However, by 1849, the rapids of the St. Lawrence had been tamed