Albany is situated on the Hudson River, where Henry Hudson ended the voyage of the Half Moon in 1609. It was settled by Dutch-speaking Walloons from Holland, Norwegians, Danes, Germans, and Scots during the patronship of Kiliaen Van Rensselaer and was named in honor of the Duke of Kent and Albany when the British took over the city in 1664. Despite the French and Indian War, Albany was a thriving fur-trading center in 1754. Albany's General Philip Schuyler commanded the northern defenses in the Revolution and, according to Daniel Webster, was "second only to Washington in the services he performed for his country."

Albany has been a transportation center since Native American trail days. Robert Fulton's steamboat, the Clermont, arrived here from Jersey City in 1807. The Erie Canal opened in 1825; by 1831, 15,000 canal boats and 500 ocean-going ships crowded Albany's docks.

Politics is a colorful part of the business of New York's capital city. Located on the western bank of the Hudson River and at the crossroads of major state highways, Albany is now a hub of transportation, business, industry, and culture.