The Ottawa River was part of the Aboriginal trading route and although there were minor fur-trading posts around the Ottawa Valley, the first permanent settlement in the region was on the northern side of the Ottawa River. Wrightville (or Wrightsville or Wrightstown, as it was sometimes called) was established by New Englander Philemon Wright in 1800 and quickly became an agricultural community involved in the timber trade. Wrightville was later renamed Hull, and is now part of the City of Gatineau.
Among the earliest settlers to live on the south side of the river was a woman named Lamira Dow Billings. Lamira Dow was born in Vermont in 1796 and came to Upper Canada with her parents in 1801. The family settled in Merrickville, where Lamira became a teacher. Her salary was $7.00 a month plus room and board. At the end of the school term, she found that she was to be paid in wheat receipts that would be honoured by a storekeeper in Brockville. After making the 20-mile journey on foot, she was told that the receipts would not be accepted for credit unless the wheat itself was brought to the store. Miss Dow returned to Merrickville, borrowed a team of horses and delivered the wheat. Lamira Dow married Braddish Billings in 1813. That same year the couple moved to a farm in Gloucester Township south of the Rideau River (now part of the city of Ottawa). For seven years, they were the only settlers in the area. The Billings helped to build the first bridge, school and church in the area.
The founding of what would become Ottawa began with the Governor-in-Chief of British North America, Sir George Ramsay, the Earl of Dalhousie. He travelled to the area in 1823 and arranged to purchase land along the Ottawa River, including what is now Parliament Hill. Three years later Britain approved the construction of the Rideau Canal, deemed an essential alternate route between Montréal and Lake Ontario in the event of an American attack. Dalhousie was able to use his land for the canal and for the community that would spring up on either side. A construction camp was set up in 1826 with hundreds arriving at the canal site by the end of the year.
Accompanied by Scottish masonry contractor Thomas McKay, canal designer Colonel John By examined the shoreline for a suitable entranceway to the canal. In consultation with the Earl of Dalhousie, they decided the entranceway should be located in Sleigh Bay (later Entrance Bay) between what is now Major's Hill and Parliament Hill.
Dalhousie visited in 1827 and 1828 to follow the progress of both the canal and the developing town. With his approval the town was named Bytown in 1827 in honour of Colonel By, who was in charge of both the design and construction of the canal as well as the development of the adjacent community.
Construction of the Rideau Canal, through swamps and rocky headlands, was achieved largely by Irish labourers, Scottish stonemasons and the Royal Sappers and Miners who had been brought from Britain for this task. Working conditions were dangerous, and many lives were lost to swamp fever and accidents. The Rideau Canal opened in 1832, a huge undertaking and engineering marvel. Many of the nearly 1000 inhabitants of Bytown were on hand to welcome Colonel By and officials as they travelled through the locks on the steamer Rideau on May 29.
To link the canal site with Wrightville, the 640-foot Union Bridge was built below the Chaudière Falls using the rock outcroppings as abutments in a series of bridges that made up the whole. This wooden truss bridge was used until it collapsed in 1836. A ferry service was then provided until a wire suspension bridge opened in 1844.
At the Earl of Dalhousie's request, Colonel By laid out the town's grid. The Rideau Canal bisected the community, which was served by two main roads: Rideau Street in Lower Town and Wellington Street in Upper Town. Lower Town, to the east of the canal, was populated by Roman Catholics, both Irish and French; Upper Town, to the west, was made up largely of Protestants, both English and Scottish. Barrack's Hill (now Parliament Hill) was home to soldiers. Along the canal embankment, By allowed canal labourers to "squat" in sod or log shanties. This area became known as Corkstown, after County Cork in Ireland where many of the labourers were from. Once the canal was finished, the Corkstown inhabitants left Bytown or moved into Lower Town.
In 1845, the first continuous plank sidewalk was laid on Rideau Street. By 1854 there were ten miles of boardwalks to help pedestrians avoid the terrible roads - muddy in rainy weather and dusty in dry spells. Upon his arrival in 1866, Governor General Monck was so horrified by the state of the road leading from his residence at Rideau Hall to his office in the East Block, he arranged for a six-oar cutter with a Royal Navy crew to row him down the Ottawa River. Streets were not paved until much later; the first street to be paved was Sparks Street in 1895. Streets were first lit by whale oil lamps. These lamps were replaced by gaslight on December 31, 1855 but still had to be lit by a lamplighter with a ladder each night. Electric arc lights were installed in 1885, despite letters to the newspaper complaining that residents might not be able to sleep, as night was being turned into day.
In 1830, Jean-Baptiste Saint-Louis erected the first sawmill in Bytown. Many followed his example at strategic points near the Rideau and Chaudière falls, including Thomas McKay, who opened the first grist mill, as well as a sawmill.
The first timber slide was built in 1829 by Ruggles Wright, son of Philemon Wright, on the north side of the Ottawa River, allowing logs to safely bypass the Chaudière Falls. Bytown's first timber slide opened in 1836. Expert raftsmen steered cribs - rafts made of squared timbers tied together - down the slides. Watching the cribs go down the slide became a popular activity with visitors, and many, including royalty, were even given rides down the chute. The expression "ride the Bytown slide" gained widespread popularity in the mid 1800s as a result of this exhilarating activity.
In 1850, Bytown was incorporated as a town and had a prosperous lumber industry. In 1902, the town's lumber output reached 613 million board feet. It declined in later years as the region's nearby forests became depleted.
Ottawa's development was also in large part due to its eventual status as the capital of the Province of Canada. In 1855, Bytown not only achieved city status, but also changed its name to Ottawa. Many thought that such a change might improve the city's chance of becoming the capital. The question of where the capital might be permanently located was put to Queen Victoria in 1857.
Of the proposed choices for the capital: Québec, Montréal, Toronto, Kingston and Ottawa, the latter was the Governor General's preference. On New Year's Eve 1857, Governor General Sir Edmund Head received a message announcing that the Queen had chosen Ottawa.
In 1859, a competition was announced for the design of three buildings - a Parliament building and two departmental buildings - to be erected on Barrack's Hill, now called Parliament Hill. The chosen design was in the Gothic Revival style. The cornerstone was laid in September 1860 by Edward, the Prince of Wales. Work on the buildings came to a halt in 1861 due to cost overruns, throwing labourers and skilled craftsmen into unemployment. Construction resumed in 1863 and the first session of Parliament was held in the unfinished Parliament building on June 6, 1866.
Disaster was to strike the much-admired architecture. A fire in 1897 damaged the West Block. In February 1916 a major fire started in Centre Block, destroying all but the Library of Parliament. A newly designed Parliament building was built in 1917.