The history of Toronto, Ontario, Canada begins several millennia ago. Archaeological finds in the area have found artifacts of First Nations settlements dating back several thousand years. The Wyandot people were likely the first group to live in the area, followed by the Iroquois. When Europeans first came to Toronto, they found a small village known as Teiaiagon on the banks of the Humber River. Between visits by European explorers, the village was abandoned by the Iroquois, who moved south of Lake Ontario and the Mississaugas, a branch of the Ojibwa settled along the north shore of the lake.
The French first set up trading posts in the area, including Fort Rouillé in 1750, which they abandoned as the British conquered French North America. In 1786, Lord Dorchester arrived in Quebec City as Governor-in-Chief of British North America. His mission was to solve the problems of the newly landed Loyalists from the United States after the US War of Independence. At first, Dorchester suggested opening the new Canada West as districts under the Quebec government, but the British Government made known its intention to split Canada into Upper and Lower Canada. Dorchester began organizing for the new province of Upper Canada, including a capital. Dorchester's first choice was Kingston, but was aware of the number of Loyalists in the Bay of Quinte and Niagara areas, and chose instead the location north of the Bay of Toronto, midway between the settlements and 30 miles (48 km) from the US. Under the policy of the time, the British recognized aboriginal title to the land and Dorchester arranged to purchase the lands from the Mississaugas. A provisional Upper Canada government was set up in Newark (today's Niagara-on-the-Lake) in 1791.
In 1793, Lieutenant Governor John Graves Simcoe moved the capital of Upper Canada to Toronto, which he named York, not wanting an aboriginal name. Simcoe originally planned for York to be a city and military outpost and to set up a capital in the area of London, Ontario, but he abandoned the plan and York was named the permanent capital in 1796. The Mississaugas set up a settlement reserve in the area of Port Credit to the west of York, and eventually moved further to the west.