Northwest Territory, in American history, region that constitutes the present states of Ohio, Indiana, Illinois, Michigan, Wisconsin, and the eastern part of Minnesota, a total area of about 688,621 sq km (about 265,878 sq mi). The area was ceded by Britain to the United States in 1783. On the basis of their early charters, Virginia, New York, Massachusetts, and Connecticut claimed the greater part of it. The other states refused to recognize these claims and insisted that the territory should belong to the country as a whole. New York ceded its claims in 1781; Virginia, in 1784; Massachusetts, in 1785; and Connecticut, in 1786. All of these colonies, however, reserved for special purposes certain lands from the cession. Virginia retained a considerable area in southern Ohio known as the Virginia Military district, and Connecticut retained approximately 1,315,230 hectares (3,250,000 acres), known as the Western Reserve, in northern Ohio.
On March 1, 1784, Thomas Jefferson, then a member of the Continental Congress, reported to Congress a temporary plan of government, but no plan was accepted until the Northwest Ordinance of 1787. The ordinance provided for the formation of not less than three, nor more than five, states. It defined the boundaries of these states, forbade slavery in the territory, and set at 60,000 free inhabitants the population requirement for statehood there. In October 1787, Major General Arthur St. Clair was appointed the first governor of the territory. In July 1800, the western part of the territory was constituted into the District of Indiana; in March 1803, the state of Ohio was created; in January 1805, Michigan Territory was created; in February 1809, the Illinois Territory was organized; and in April 1836, part of Michigan Territory was organized into the Territory of Wisconsin.