Edmonton, like many places in North America had been inhabited for thousands of years by indigenous groups. First permanent settlement by Europeans is known to have started around 1795, when Fort Edmonton was officially founded around present day Fort Saskatchewan.
In the early 19th century, the fort was moved to near the current (Alberta) legislature site. The fort was big in the fur trade business. The first settlement outside of the fort was on "River lots", which actually now consist of neighbourhoods. In 1894, settlement began outside the fort and the Town of Edmonton was established. The town encompassed modern Boyle Street (the original downtown) and McCauley neighbourhoods.
In the 1900-1910 period, the Hudson's Bay Company was granted a reserve on much of the Fort's land but in the decade it was eventually all sold off to Edmonton. Edmonton became a city in 1904 and shortly after, with a mere 5,000 people became Alberta's capital. With the new land west of Queens Avenue (modern 100 St) available to the city, the city grew tremendously, and Boyle Street was abandoned as the downtown for the new, current downtown. Many new communities like Glenora, Highlands, and Westmount were built in this time as the economy started to gain momentum. And during the early 1910s, Edmonton grew very rapidly, causing rising speculation in real estate prices. In 1912, Edmonton amalgamated with the city of Strathcona, south of the North Saskatchewan River; as a result, the city extended south of the river.
Just prior to World War I, the real estate boom ended suddenly, causing the city's population to decline sharply—from over 72,500 in 1914 to under 54,000 only two years later., Recruitment to the Canadian military during the war also contributed to the drop in population. Afterwards, the city was slow to recover in population and economy during the 1920s and 1930s, until World War II.
The first licensed airfield in Canada, Blatchford Field (now Edmonton City Centre (Blatchford Field) Airport), commenced operation in 1929. Pioneering aviators such as Wilfrid R. "Wop" May and Max Ward used Blatchford Field as a major base for the distribution of mail, food, and medicine to Northern Canada; hence Edmonton's role as the "Gateway to the North" was strengthened. During World War II saw Edmonton's becoming a major base for the construction of the Alaska Highway and the Northwest Staging Route.