From the outset of the American Revolution, Britain controlled the territory northwest of the Ohio River. British officials used the territory to launch Indian attacks against American encroachment throughout the west. During 1778 and '79, a campaign to end the Indian attacks upon the Kentucky settlements was undertaken. With support from Virginia and from Gov. Patrick Henry, George Rogers Clark and a company of frontiersmen captured British posts at Kaskaskia, Cahokia, and Vincennes. American control of these posts and of the Ohio River proved sufficient claim to the territory.

With the close of hostilities between Britain and the United States came an extended period of negotiations. Benjamin Franklin and John Jay orchestrated terms for peace and for American independence. The Treaty of Paris, signed Sept. 3, 1783, granted to the United States the territory from the Great Lakes to the northern boundary of Spanish-held Florida and westward to the Mississippi River.

Governing of the western territory soon became a political topic. The Northwest Ordinance, signed July 13, 1787, made provision for a centralized government. This government would be formed in several stages. The first stage prescribed a government without representation of the inhabitants. A governor, secretary, and judges were appointed to handle the requirements of the territory. The capital was established at Marietta (in present-day Ohio) and Arthur St. Clair was appointed as governor.

The second stage of government was possible when the population of the territory included 5,000 free males over the age of 21. The adult males who owned 50 acres or more then were allowed to elect representatives to the territorial legislature. The representative was required to be a landholder of at least 250 acres. This group of representatives would meet and would nominate 10 individuals to serve in the upper house. These individuals were required to own 500 acres or more. The list of names was sent to the President who chose five to serve in that capacity.

The ordinance stated that the territory would be divided into no less than three and no more than five states. A state could be created when the population reached 60,000 residents. Delegates from these new states would be admitted into congress on an equal footing. The Northwest Territory eventually would be divided into the present-day states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and the eastern portion of Minnesota.

Following the Battle of Fallen Timbers during the summer of 1794, immigration into the Old Northwest increased.

During 1799 William Henry Harrison was selected as the congressional representative of the growing territory. The 27-year-old saw his responsibilities in congress quite clearly. As a resident of the territory, he had seen firsthand the problems its residents faced.

Two issues were foremost on his agenda. The immenseness of the territory encouraged lawlessness. Cheats, thieves, and other criminals had little to fear on the frontier. Harrison argued the need to improve the system of courts and persuaded the formation of a congressional committee to "inquire into the judicial system of the Northwest Territory and recommend changes." The logical solution was division of the territory, thereby reducing the burden upon the judges of the territory. Harrison and other Virginians favored dividing the region into two territories, with the eastern most being large enough to become a state immediately. They hoped that by moving quickly to statehood they could promote a democratic republican state. Gov. St. Clair and others supported the idea of three divisions. If three divisions were created statehood would be postponed and a Federalist state was likely to be created.

The committee, which Harrison chaired, made a recommendation to congress to create two territories from the Northwest Territory. The report stated "From southeast to northwest the territory extended fifteen hundred miles. The two most widely separated places for holding court were thirteen hundred miles apart. This fact alone would prevent the administration of justice. In the three western counties - Knox, St. Clair, and Randolph - during a period of five years there had been only one session of court having power to punish felonies."

On July 4, 1800, the territory was divided by a line from the mouth of the Great Miami River north to Fort Recovery, then due north to the northern border. The eastern section remained the Northwest Territory and the western area became the Indiana Territory. Its government would be fashioned after the system in use in the Northwest Territory.

Harrison's second concern before congress involved the methods by which land was sold within the territory. The government typically sold the land in lots of 4,000 or more acres. Land companies supported this practice. Speculators purchased the land, divided it into smaller lots, and resold it at a huge profit. Again a congressional committee was created and Harrison was selected to serve as chairman. On Feb. 14, 1800, a bill was introduced in the house that provided for townships to be divided into lots of 320 acres which would be offered at two dollars per acre. The bill further provided for the option of making payments in easy installments without interest.

The Indiana Territory now had provisions for settlers to purchase land. It had its own judicial positions and was totally separated from the administration of Gov. St. Clair. All that remained was to appoint a governor and to fill the other positions. Vincennes was not a favored location for a motivated politician. "There was scarcely a western post at that time with a reputation as objectionable as that of Vincennes." Its location far from the political arena and the lack of easy travel had created a haven for criminals. Vincennes had a "notoriety for scenes of drunken brawls and Indian fights." A few days before the appointment, Harrison, in a letter to a friend in the territory, commented that he would not accept the position of governor even if it were offered. However, when the offer came, his friends were able to persuade him. They promised that the remote post would not eliminate him from consideration if some better appointment surfaced at a later time. On May 13, 1800, President John Adams appointed Harrison as governor of the Indiana Territory.

Other appointments included John Gibson as the territory's secretary and William Clark (George Rogers Clark's brother), Henry Vanderburgh, and John Griffin as judges.

The population of the Indiana Territory was estimated at 6,550. Much of that population was centered around the Vincennes area. The city boasted 714 residents with an additional 819 in the nearby area. The second center of population was around Clark's Grant where more that 900 settlers had made their homes.

Harrison arrived in the territory on Jan. 10, 1801, and immediately began as governor. Within two days he met with the judges in legislative session and within two weeks the group passed seven new laws and adopted three resolutions.

On March 1, 1803, Ohio became a state. The remaining portions of the Northwest Territory were added to the Indiana Territory.