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New Amsterdam is a Dutch settlement established at the southern tip of Manhattan Island that serves the seat of the colonial government in New Netherland. The factorij became a settlement outside Fort Amsterdam. The fort is situated on the strategic southern tip of the island of Manhattan and defends the fur trade operations of the Dutch West India Company in the North River (Hudson River). It became a provincial extension of the Dutch Republic and was designated as the capital of the province.

The population of New Netherland had grown to 2,000 people, with 1,500 living in New Amsterdam. The population of New Netherland had skyrocketed to almost 9,000 people, 2,500 of whom lived in New Amsterdam, 1,000 lived near Fort Orange, and the remainder in other towns and villages.