Like most of this part of Borneo, this area was once under the control of the Bruneian Empire in the 15th century before being ceded to the Sultanate of Sulu between the 17th and 18th centuries as a gift for helping the Bruneian forces during a civil war in Brunei. The name Tawao was used on nautical charts by 1857, and there is evidence of a settlement by 1879. The East India Company had established a trading post in Borneo, though there was no significant activity by the Dutch on the east coast. In 1846, Netherlands signed a treaty with the Sultan of Bulungan, where the latter assured the Dutch control of the area. When the Dutch began to operate in 1867, the Sultan married his son to the daughter of the Sultan of Tarakan. Around this time, the Dutch sphere of influence reached Tawao. They controlled the area north of Tawao, overlapping an area controlled by the Sultan of Sulu.