The first inhabitants settled in the area that is now Edmonton around 3,000 BC and perhaps as early as 12,000 BC, when an ice-free corridor opened up as the last ice age ended and timber, water, and wildlife became available in the region. In 1754, Anthony Henday, an explorer working for the Hudson's Bay Company (HBC), may have been the first European to enter the Edmonton area. His expeditions across the Canadian Prairies were mainly to seek contact with the aboriginal population for the purpose of establishing the fur trade, as competition was fierce between the Hudson's Bay Company and the North West Company. By 1795, Fort Edmonton was established on the north bank of the river, as a major trading post for the Hudson's Bay Company. The name of the new fort was suggested by John Peter Pruden after Edmonton, London, the home town of both the HBC deputy governor Sir James Winter Lake, and Pruden. In the late 19th century, the highly fertile soils surrounding Edmonton helped attract settlers, further establishing Edmonton as a major regional commercial and agricultural centre. Edmonton was also a stopping point for people hoping to cash in on the Klondike Gold Rush in 1897, although the majority of people doing so chose to take a steamship north to the Yukon from Vancouver.
Incorporated as a city in 1904 with a population of 8,350, Edmonton became the capital of Alberta as the province joined Confederation a year later, on September 1, 1905. In November 1905, the Canadian Northern Railway (CNR) arrived in Edmonton, accelerating growth.
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 North Saskatchewan River for the first time.
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. World War II saw Edmonton becoming a major base for the construction of the Alaska Highway and the Northwest Staging Route.