Claim: Albany, New York is in the Hudson Valley of New York.

Albany -LRB- -LSB- ˈɔːlbəni -RSB- -RRB- is the capital of the U.S. state of New York and the seat of Albany County . Roughly 150 mi north of New York City , Albany developed on the west bank of the Hudson River , about 10 mi south of its confluence with the Mohawk River . The population of the City of Albany was 97,856 according to the 2010 census . Albany constitutes the economic and cultural core of the Capital District of New York State , which comprises the Albany-Schenectady-Troy , NY Metropolitan Statistical Area , including the nearby cities and suburbs of Troy , Schenectady , and Saratoga Springs . With a 2013 Census-estimated population of 1.1 million the Capital District is the third-most populous metropolitan region in the state and 38th in the United States .   Fortune 500 companies with offices in Albany include American Express , J.P. Morgan and Chase , Merrill Lynch , General Electric , Verizon , Goldman Sachs , International Paper , and Key Bank . In the 21st century , the Capital District has emerged as a major anchor of Tech Valley , the moniker describing the technologically-focused region of eastern New York State .   This was the first European settlement in the state . It was settled by Dutch colonists who in 1614 , built Fort Nassau for fur trading and Fort Orange in 1624 . They formed successful relations with both the Mahican and the Mohawk peoples , two major Native American nations in the region . The fur trade attracted settlers who founded a village called Beverwijck near Fort Orange . In 1664 the English took over the Dutch settlements , renaming the city as Albany , in honor of the then Duke of Albany , the future James II of England and James VII of Scotland . The city was officially chartered in 1686 under English rule . It became the capital of New York State in 1797 , following the United States gaining independence in the American Revolutionary War . Albany is one of the oldest surviving settlements of the original British thirteen colonies , and the longest continuously chartered city in the United States . Its charter is possibly the longest-running instrument of municipal government in the Western Hemisphere .   During the late 18th century and throughout most of the 19th , Albany was a center of trade and transportation . It is on the north end of the navigable Hudson River , was the original eastern terminus of the Erie Canal connecting to the Great Lakes , and was home to some of the earliest railroad systems in the world . Albany 's main exports at the time were beer , lumber , published works , and ironworks . Beginning in 1810 , Albany was one of the ten most populous cities in the United States , a distinction it held until the 1860 census .   Albany is one of the first cities in the world to have installed public water mains , sewer lines , natural gas lines and electricity , infrastructure and utilities that attracted and supported substantial new industry to the city and surrounding area during the 19th century .   In the 20th century , the city opened one of the first commercial airports in the world , the precursor of today 's Albany International Airport . During the 1920s a powerful political machine controlled by the Democratic Party arose in the state capital , connected to politics in New York City as well . It marshalled the power of immigrants and their descendants in both cities .   The city 's skyline changed in the 1960s and 1970s with the construction of office towers around the Empire State Plaza and at the uptown campus of SUNY Albany , mainly under the direction of Governor Nelson Rockefeller . While Albany experienced a decline in its population due to urban sprawl and suburbanization , many of its historic neighborhoods were saved from destruction through the policies of Mayor Erastus Corning 2nd , the longest-serving mayor of any city in the United States . In the early 21st century , Albany has experienced growth in the high-technology industry , with great strides in the nanotechnology sector .   Albany has been a center of higher education for over a century , with much of the remainder of its economy dependent on state government and health care services . The city has rebounded from the urban decline of the 1970s and 1980s , with noticeable development taking place in the city 's downtown and midtown neighborhoods . Albany is known for its rich history , commerce , culture , architecture , and institutions of higher education . Albany won the All-America City Award in both 1991 and 2009 .