Henry Hudson was the first European explorer to visit Albany in the early 1600's when he received a commission for the the Dutch East India Company to explore the New World.  He traveled up the river, now his namesake, from modern day New York to what is now Albany, then known as Fort Orange.  Hudson reported to his employers in the Netherlands that the area was rich in natural resources and soon the Dutch founded the colony of New Netherland on the site.  The colony was taken over by the British in 1664 and renamed after the Duke of Albany.   

The Dutch continued to farm and trap furs in the area, maintaining control over the fur trade there.  Over time they were joined by French and British settlers.  During the American Revolution the Battle of Saratoga was fought near Albany, an important battle for the colonies which is said by historians to have turned the tide of the war in their favor. 

In 1797 Albany was named the capitol of New York State due to its strategic position as a transportation center.  It remains the capitol to this day.