The British took possession of the area that included what would become the Northwest Territory from the French. In the Royal Proclamation of 1763, Britain forbid American colonists from settling in the “New West”, which included present-day Indiana. The British allowed a few hundred Frenchmen who were already settled in the area to remain but the colonists were restricted from crossing the Appalachian Mountains to settle. The British had set aside this land in treaties with Native Americans.
As crowding and competition increased, the prohibition put stress on the European settlers and contributed to the American rebellion and revolution. The line was just west of Appalachia and is referred to as the Proclamation Line.