Today the Capital District is heavily dependent upon the government, education, and health care sectors for employment. However, during the 1800s it was one of the country’s main transportation hubs and industrial centers. The completion of the Erie and Champlain canals in the 1820s brought unprecedented trade traffic from the west and the north. The canals terminated at the Hudson River near Albany and Troy and provided easy access to New York City and its international harbor. Railroad building that commenced in the 1830s generated even more traffic, linking the region directly to the rest of the country.

In the years following the completion of the canals and railroads, large-scale industrial development took place in the cities of Albany, Watervliet, Cohoes, Schenectady, and Troy. America’s greatest inventor Thomas Edison decided to relocate his company’s headquarters to Schenectady. Later renamed General Electric, it employed thirty thousand people at its height and supported many famous scientists. Cohoes became the center of the country’s cotton and knitting industry after inventor Timothy Bailey installed his famous knitting machine at the Cohoes Falls. Troy became a major iron and steel manufacturer, and pioneered the collar and cuff industry. Albany developed a wide range of industries, many of which were established or supported by inventors, such as the manufacture of stoves, agricultural machines, billiard balls, and perforated paper.

Saratoga County is one of the fastest-growing areas in the state, with a population of 200,000 people. Its location just north of the state capital, abundant rivers, and first-class transportation routes made it ideal for industry to flourish. Huge paper mills, tanneries, and foundries made good use the of available water power and seemingly inexhaustible supply of timber. During this period, Saratoga Springs drew thousands of visitors each year to its rare mineral springs, world-class racetrack, and popular gambling houses.