The history of Albany, New York, from 1784 to 1860, begins with the ratification of the Treaty of Paris by the Congress of the Confederation in 1784 and ends in 1860, prior to the American Civil War.

After the Revolutionary War, Albany County saw a great increase in real estate transactions. After Horatio Gates' win over John Burgoyne at Saratoga in 1777, the upper Hudson Valley was generally at peace as the war raged on elsewhere. Prosperity was soon seen all over Upstate New York. Migrants from Vermont and Connecticut began flowing in, noting the advantages of living on the Hudson and trading at Albany, while being only a few days' sail from New York City.Anderson (1897), p. 68 Albany reported a population of 3,498 in the first national census in 1790, an increase of almost 700% since its chartering. In 1797, the state capital of New York was moved permanently to Albany. From statehood to this date, the Legislature had frequently moved the state capital between Albany, Kingston, Poughkeepsie, and the city of New York. Albany is the second oldest state capital in the United States.Rittner (2002), back cover

Albany has been a center of transportation for much of its history. In the late 18th century and early 19th century, Albany saw development of the turnpike and by 1815, Albany was the turnpike center of the state. The development of Simeon De Witt's gridded block system in 1794—which gave Albany its original bird and mammal street names,—was intersected by these important arterials coming out of Albany, cutting through the city at unexpected angles.McEneny (2006), p. 75Waite (1993), p. 201 The advent of the turnpike, in conjunction with canal and railroad systems, made Albany the hub of transportation for pioneers going to Buffalo and the Michigan Territory in the early and mid-19th century.Albany. (2010). Encyclopædia Britannica. Retrieved June 27, 2010, from Encyclopædia Britannica Online.

In 1807, Robert Fulton initiated a steamboat line from New York to Albany, the first successful enterprise of its kind.McEneny (2006), p. 92 By 1810, with 10,763 people, Albany was the 10th largest urban place in the nation. The town and village known as "the Colonie" to the north of Albany was annexed in 1815. In 1825 the Erie Canal was completed, forming a continuous water route from the Great Lakes to New York City. Unlike the current Barge Canal, which ends at nearby Waterford, the original Erie Canal ended at Albany; Lock 1 was located north of Colonie Street. The Canal emptied into a man-made lagoon called the Albany Basin, which was Albany's main port from 1825 until the Port of Albany-Rensselaer opened in 1932. In 1829, while working as a professor at the Albany Academy, Joseph Henry, widely regarded as "the foremost American scientist of the 19th century", built the first electric motor. Three years later, he discovered electromagnetic self-induction (the SI unit for which is now the henry). He went on to be the first Secretary of the Smithsonian Institution.Joseph Henry. (2010). Encyclopædia Britannica. Retrieved September 18, 2010, from Encyclopædia Britannica Online. In the 1830 and 1840 censuses, Albany moved up to 9th largest urban place in the nation, then back to 10th in 1850. This was the last time the city was one of the top ten largest urban places in the nation.

Albany also has significant history with rail transport, as the location of two major regional railroad headquarters. The Delaware and Hudson Railway was headquartered in Albany at what is now the SUNY System Administration Building.Waite (1993), p. 245 In 1853, Erastus Corning, a noted industrialist and Albany's mayor from 1834 to 1837, consolidated ten railroads stretching from Albany to Buffalo into the New York Central Railroad (NYCRR), headquartered in Albany until Cornelius Vanderbilt moved it to New York City in 1867. One of the ten companies that formed the NYCRR was the Mohawk and Hudson Railroad, which was the first railroad in the state and the first successful steam railroad running regularly scheduled service in the country.

1784–1800

After the American Revolution, Albany began to grow both physically and commercially, but also culturally. The first post office in Albany was established in 1784 on the east side of Broadway, north of Maiden Lane. In 1785 the Common Council ordered to change the names of any streets that seemed to "savor of the English rule" and Fort Frederick was demolished, which allowed for further expansion of the city to the west. Also in 1785, the sloop Experiment left Albany for China, being only the second American ship to go to China, and the first expressly built for that purpose. A regular schedule of comedic acts were performed for several months in 1786, the first time comedians performed in Albany. John Lansing Jr. became mayor in that year as well.

In 1788 and 1789 stage lines are established linking Albany to Lansingburgh, New York and Springfield, Massachusetts, prior to this the only stagecoach service was to New York. This is the very beginning of Albany's rise as a transportation hub, stage lines being an early version of intercity bus lines. In 1791 stage coach mail route is established to Bennington, Vermont and a stage line is started to Oneida County in 1792. In the following few years, stage lines are established with the surrounding communities and beyond, such as Ballston in 1793 and to Buffalo and Niagara Falls in 1811. Within ten years turnpikes would start to radiate out from Albany to surrounding communities and farther.

The first national census was taken in 1790 and the city was shown to have 3,498 people. Albany County had 75,180 people, making it larger than the next two largest counties combined, New York and Dutchess counties. Also in 1790, the street names were officially changed, east–west streets named for mammals and north–south streets for birds; most of the bird named streets continue to today with their names from this time, while the mammal streets, except for Elk, are changed over the course of time. Abraham Yates Jr. was appointed mayor in this year as well. Congress authorized the construction of a post road from Albany to Canajoharie through Schenectady. The Albany Library was incorporated in 1791 as well as the Bank of Albany. In 1797 the Albany Museum was incorporated.

Emigration from New England to the western part of the state increased as roads were improved west of Albany. By 1795, 500 sleighs a day were passing through Albany in February on their way from New England states to the west. On the death of Mayor Yates, Abraham Ten Broeck was appointed mayor a second time.

In 1797, the state capital of New York was moved permanently to Albany. From statehood to this date the legislature spent roughly equal time constantly moving between Albany, Kingston, Poughkeepsie, and the city of New York. Also in 1797 the Ten Broeck Mansion was completed by Stephen Van Rensselaer for his brother-in-law Mayor Ten Broeck. Later that year he was replaced by Philip Van Rensselaer. A State Capitol, jointly used as City Hall, was finished at the corner of State and Lodge streets.

Transportation hub to the west (1800–1830) The era of turnpikes in Albany started with the incorporation of the Great Western Turnpike Company in 1799. The Great Western Turnpike (today Western Avenue and US Route 20) connected Albany with the Finger Lakes and eventually Lake Erie at the site of Buffalo. Various other corporations soon started to connect Albany to various places: Lebanon Springs in 1799, Schenectady in 1801, Bethlehem in 1804, Albany and Delaware in 1805. In 1803 the second bank chartered in Albany, the New York State Bank, opened. In 1807, Robert Fulton initiated a steamboat line from New York to Albany; this was the first commercially viable steamboat in the world.

In 1804 Aaron Burr, who had a law office in Albany at 24 South Pearl Street, came into conflict with Alexander Hamilton. At 50 State Street, the home of John Tayler (later Lt. Governor and acting-Governor of the state), Hamilton made disparaging remarks about Burr and these were published in a local newspaper.

A new building was constructed at the Public Square in 1808 at the head of State Street to be used jointly as the State Capitol and City Hall, just as the previous capitol/city hall on Broadway and Hudson Avenue. In 1810 Middle Public Square has its name changed to Washington Square; this and the cemetery next to it which was established a few years before are the genesis of the present-day Washington Park.

By 1810 Albany, with 10,763 people, was the 10th largest city in the nation. The city continues to prosper and grow, adding new buildings, institutions, and people. In 1813 The Albany Academy is incorporated, the Albany Argus newspaper is established, two more banks apply for charters, and the grand opening of the Green Street theatre (first professional theater in Albany). The next year sees the opening of the Albany Academy for Girls. The city in 1815 annexes the village of Colonie, today it is the neighborhood of Arbor Hill. In 1816 a petition is started to get the Legislature to construct a canal from Albany to Lake Erie. After 17 years Mayor Van Rensselaer is removed from office for political reasons, and Colonel Elisha Jenkins becomes mayor of the city in 1816.

In 1817 slavery comes to a gradual end in Albany as the Legislature decides that all slaves in the state born before July 4, 1797, will be emancipated on July 4, 1827, and all slaves born after July 4, 1797, will be emancipated at age 28 for males, 25 for females. A month later the Legislature authorizes the construction of an Erie canal. Also in 1817 Martin Van Buren establishes his law firm, it is located at 111 State Street, then moves to 353 Broadway, and then in 1822 to 109 State Street. The New York State Library is established in 1818 inside the Capitol.

Philip Van Rensselaer returns to office in 1819 after Mayor Jenkins resigns. In 1819 the city is built up only one mile west of the Hudson, beyond that is the Pine Bush, today the Pine Bush Preserve does not begin until five miles (8 km) out from the Hudson. Theodric Romeyn Beck performs a comprehensive agricultural and geological survey of Albany County in 1820, it is the first in the state. Also in 1820 a chamber of commerce is established at Albany. The Common Council takes over the right to appoint the mayor and in 1821 unanimously elects Charles Edward Dudley. In Albany William Charles Redfield proposes that hurricanes are circular rotational vortices.

In 1823 the Federal Dam at Troy is finished with a lock allowing for river navigation above Troy to Lansingburgh and Waterford. Throughout 1824 from January 1 to March 7 the Common Council meets trying to vote out the mayor in favor of Ambrose Spencer, but several times deadlocks 11-11, finally on March 8 on the second ballot of that day Ambrose Spencer is elected on a vote of 11 for, 10 against, and one blank. He is only the third Episcopalian mayor and non-Dutch Reformed, in 1825 he will be reelected unanimously. The Albany Institute, the predecessor to the Albany Institute of History and Art is incorporated in 1824. In 1825, a long and wide pier was constructed from, and perpendicular to, Albany's shoreline. Along with two bridges, the pier enclosed roughly of the Hudson River as the Albany Basin. The construction of the pier and bridges cost $119,980. The Erie Canal opens officially and the Seneca Chief leaves Buffalo on October 26, arriving at Albany on November 2. James Stevenson is elected by the Common Council in 1826, this is the first time in which an Episcopalian succeeds an Episcopalian as mayor of Albany. The Mohawk and Hudson Railroad (M&H), chartered in 1826, builds the Albany and Schenectady Railroad between those two cities, starting service on August 9, 1831, this is the first railway in the state.