New Amsterdam was a 17th-century Dutch settlement established at the southern tip of Manhattan Island that served as the seat of the colonial government in New Netherland. The initial trading factory gave rise to the settlement around Fort Amsterdam. The fort was situated on the strategic southern tip of the island of Manhattan and was meant to defend the fur trade operations of the Dutch West India Company in the North River (Hudson River). In 1624, it became a provincial extension of the Dutch Republic and was designated as the capital of the province in 1625. New Amsterdam became a city when it received municipal rights on February 2, 1653.
By 1655, the population of New Netherland had grown to over 2,000 people, with a 1,500 majority residing in the city of New Amsterdam.