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During the mid-18th century, the area was inhabited by a native American tribe known as the Potawatomi, who had taken the place of the Miami and Sauk and Fox peoples. The 1780s saw the arrival of the first known non-indigenous permanent settler in Chicago, Jean Baptiste Point du Sable, who is believed to be of African and European (French) descent. In 1795, following the Northwest Indian War, an area that was to be part of Chicago was turned over by some Native Americans in the Treaty of Greenville to the United States for a military post.
In 1803, the United States Army built Fort Dearborn, which was destroyed in the War of 1812, Battle of Fort Dearborn. The Ottawa, Ojibwe, and Potawatomi had ceded additional land to the United States in the 1804 Treaty of St. Louis. The Potawatomi were eventually forcibly removed from their land following the Treaty of Chicago in 1833. On August 12, 1833, the Town of Chicago was organized with a population of around 200 at that time. Within seven years it would grow to a population of over 4,000. On the 15th day of June, 1835, the first public land sales commenced with Edmund Dick Taylor as U. S. receiver of public moneys. The City of Chicago was incorporated on Saturday, March 4, 1837.
The name "Chicago" is derived from a French rendering of the Native American word shikaakwa, translated as "wild onion" or "wild garlic," from the Miami-Illinois language. The first known reference to the site of the current city of Chicago as "Checagou" was by Robert de LaSalle around 1679 in a memoir written about the time. The wild garlic plants, Allium tricoccum, were described by LaSalle's comrade, naturalist-diarist Henri Joutel, in his journal of LaSalle's last expedition.
As the site of the Chicago Portage, the city emerged as an important transportation hub between the eastern and western United States. Chicago's first railway, Galena and Chicago Union Railroad, opened in 1848, which also marked the opening of the Illinois and Michigan Canal. The canal allowed steamboats and sailing ships on the Great Lakes to connect to the Mississippi River. A flourishing economy brought residents from rural communities and immigrants abroad. Manufacturing and retail sectors became dominant among Midwestern cities, influencing the American economy, particularly in meatpacking, with the advent of the refrigerated rail car and the regional centrality of the city's Union Stock Yards.
In the 1850s Chicago gained national political prominence as the home of Senator Stephen Douglas, the champion of the Kansas-Nebraska Act and "popular sovereignty" approach to the issue of the spread of slavery. These issues also helped propel another Illinoisan, Abraham Lincoln, to the national stage. Lincoln was nominated in Chicago for the nation's presidency at the 1860 Republican National Convention and went on to defeat Douglas in the general election, setting the stage for the American Civil War.
Chicago experienced some of the fastest population growth in the world, requiring infrastructure investments. In February 1856, the Chesbrough plan for the building of Chicago's and the United States' first comprehensive sewerage system was approved by the Common Council. The project raised much of central Chicago to a new grade. While raising Chicago out of its mud and sewage, and at first improving the health of the city, the untreated sewage and industrial waste now flowed into the Chicago River, thence into Lake Michigan, polluting the primary source of fresh water for the city. Chicago responded by tunneling two miles (3 km) out into Lake Michigan to newly built water cribs. In 1900, the problem of sewage was largely resolved when the city undertook a major engineering feat. The city reversed the flow of the Chicago River so that water flowed from Lake Michigan into the river, instead of the water flowing from the river into the lake. It began with the construction and improvement of the Illinois and Michigan Canal, and completed with the Chicago Sanitary and Ship Canal leading to the Illinois River which joins the Mississippi River.
After the Great Chicago Fire of 1871 destroyed a third of the city, including the entire central business district, Chicago experienced rapid rebuilding and growth. During its rebuilding period, Chicago constructed the world's first skyscraper in 1885, using steel-skeleton construction. Labor conflicts and unrest followed, including the Haymarket affair on May 4, 1886. Concern for social problems among Chicago's lower classes led Jane Addams to be a co-founder of Hull House in 1889. Programs developed there became a model for the new field of social work. During the 1870s and 1880s, Chicago and the state of Illinois together attained national stature as leaders in the movement to improve public health. City and state laws that upgraded standards for the medical profession and fought urban epidemics of cholera, small pox and yellow fever were not only passed, but also enforced. These in turn became templates for public health reform in many other states. The city invested in many large, well-landscaped municipal parks, which also included public sanitation facilities. The chief advocate and driving force for improving public health in Chicago was Dr. John H. Rauch, M.D., who established a plan for Chicago's park system in 1866, created Lincoln Park by closing a cemetery filled with festering, shallow graves, and helped establish a new Chicago Board of Health in 1867 in response to an outbreak of cholera. Ten years later he became the secretary and then the president of the first Illinois State Board of Health, which carried out most of its activities in Chicago.
In the 19th century, Chicago became an important railroad center and in 1883 the standardized system of North American Time Zones was adopted by the general time convention of railway managers in Chicago. This gave the continent its uniform system for telling time.
In 1893, Chicago hosted the World's Columbian Exposition on former marshland at the present location of Jackson Park. The Exposition drew 27.5 million visitors, and is considered the most influential world's fair in history. The University of Chicago was founded in 1892 on the same South Side location. The term "midway" for a fair or carnival referred originally to the Midway Plaisance, a strip of park land that still runs through the University of Chicago campus and connects Washington and Jackson Parks.
Chicago's flourishing economy attracted huge numbers of new immigrants from Europe and migrants from the eastern states. Of the total population in 1900 not less than 77.4% were foreign-born, or born in the United States of foreign parentage. Germans, Irish, Poles, Swedes and Czechs made up nearly two-thirds of the foreign-born population.
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