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
Erie Canal which is navigable upstream to the New York Barge Canal's Black Rock Lock and thence to the Canal's original "Western Terminus" at Buffalo's Inner Harbor. The growth of railroads and highways across the state, and the opening of the Saint Lawrence Seaway, caused commercial traffic on the canal to decline dramatically during the second half of the 20th century. In 1992, the New York State Barge Canal was renamed the New York State Canal System (including the Erie, Cayuga-Seneca, Oswego, and Champlain canals) and placed under the newly created New York State Canal Corporation, a subsidiary of the New York