What makes the Northwest Territory so significant in American history? The Northwest Territory, established in 1787, was a vast region that included parts of Ohio, Indiana, Illinois, Michigan, and Wisconsin. This area was crucial for America’s westward expansion. The Northwest Ordinances of 1785 and 1787 laid the groundwork for governance, land distribution, and statehood. Native American tribes like the Miami and Shawnee originally inhabited this land, which later saw European exploration and the fur trade. The first permanent settlement was Marietta, Ohio, in 1788. The territory’s rich resources, strategic location, and diverse cultures have left a lasting legacy on the United States.