In 1602, the Republic of the Seven United Netherlands chartered a young and eager Dutch East India Company (Vereenigde Oostindische Compagnie or "VOC") with the mission of exploring North America's rivers and bays for a direct passage through to the Indies. Along the way, Dutch explorers were charged to claim any uncharted areas for the United Provinces, which led to several significant expeditions and, over time, Dutch explorers founded the province of New Netherland. By 1610, the VOC had already commissioned English explorer Henry Hudson who, in an attempt to find the Northwest Passage to the Indies, discovered and claimed for the VOC parts of the present-day United States and Canada. Hudson entered the Upper New York Bay by sailboat, heading up the Hudson River, which now bears his name.

Like the French in the north, the Dutch focused their interest on the fur trade. To that end, they cultivated contingent relations with the Five Nations of the Iroquois to procure greater access to key central regions from which the skins came.

The Dutch encouraged a kind of feudal aristocracy over time, to attract settlers to the region of the Hudson River, in what became known as the system of the Charter of Freedoms and Exemptions. Further south, a Swedish trading company that had ties with the Dutch tried to establish its first settlement along the Delaware River three years later. Without resources to consolidate its position, New Sweden was gradually absorbed by New Holland and later in Pennsylvania and Delaware.

The earliest Dutch settlement was built around 1613, and consisted of a number of small huts built by the crew of the "Tijger" (Tiger), a Dutch ship under the command of Captain Adriaen Block, which had caught fire while sailing on the Hudson. Soon after, the first of two Fort Nassaus was built, and small factorijen or trading posts went up, where commerce could be conducted with the Algonquian and Iroquois population, possibly at Schenectady, Esopus, Quinnipiac, Communipaw, and elsewhere.