Local History

From Tobacco Port to Sailing Capital: How Annapolis Became Annapolis

October 6, 2026 · James Blackwell
The short answer

Annapolis began in 1649 as a small settlement at the mouth of the Severn, became Maryland's capital in 1694, and was laid out on an unusual baroque street plan built around two circles — State Circle and Church Circle — with streets radiating outward like spokes. Colonial wealth came from tobacco moving through what is now City Dock, and that wealth built the brick townhouses still standing in the Annapolis Historic District. When Baltimore's deeper harbor took over the shipping trade, Annapolis stayed what it had become: a government town. The U.S. Naval Academy arrived in 1845 and anchored the city to the water in a new way. The sailing identity followed. That sequence — port, capital, academy, sailing town — explains almost everything a newcomer finds confusing about the street grid, the architecture, and the traffic.

The first time I drive a buyer into downtown Annapolis, I know what's coming. Somewhere between Church Circle and the water, they'll say some version of: why are the streets like this?

Fair question. Most American towns were laid out on a grid by somebody with a ruler and a hurry. Annapolis wasn't. And once you understand why, the whole city stops feeling like a charming inconvenience and starts making sense — including the parts that frustrate you, like the parking.

So here's the coffee-conversation version of how this place came to be.

It started as a refuge, not a capital. In 1649, a group of Puritan settlers pushed out of Virginia came north and planted themselves at the mouth of the Severn. The settlement went by a few names in its early decades — Providence, Anne Arundel Town, the Town at Proctor's — none of which stuck. It was small, it was agricultural, and nobody would have picked it out as the future seat of anything.

Then the capital moved, and the town got a name and a plan. In 1694, Maryland's government relocated from St. Mary's City, and the new governor, Francis Nicholson, made two decisions that still shape your commute. First, he named the place Annapolis, after Princess Anne, later Queen Anne. Second — and this is the fun one — he didn't lay out a grid. He laid out a baroque plan: two prominent circles on the high ground, State Circle and Church Circle, with streets radiating away from them like spokes on a wheel, and the state house placed on the highest point so it would be visible from everywhere. It was a European idea, transplanted. It is also why you can drive three blocks in what you swear is a straight line and end up facing a different direction than you started.

Tobacco built the waterfront. Colonial Maryland ran on tobacco the way other economies ran on cotton or cod. Hogsheads — huge barrels — came in from plantations and farms across the region, got inspected, and were loaded onto ships bound for England. The place all of that happened is the harbor you now know as City Dock. It's worth standing there for a minute and re-seeing it: today you're looking at boats and ice cream; the same water once handled the freight of an entire colonial economy.

That waterfront also carries the harder half of the story, and it should be told plainly. Enslaved Africans were brought ashore at this harbor. The Kunta Kinte–Alex Haley Memorial at City Dock marks the 1767 arrival of the ship Lord Ligonier and the ancestor Alex Haley traced in Roots. It is one of the more direct pieces of public history in any American port city, and it sits exactly where the history happened. Newcomers should know it's there before someone else points it out.

The wealth that came through the dock built the houses you'll tour. Annapolis had a boom in the decades before the Revolution — merchants, lawyers, planters, and the people who served the capital all concentrated in a very small area with a great deal of money. What they built were substantial brick townhouses, and an unusual number of them survived: the William Paca House, built by a signer of the Declaration of Independence, and the Hammond-Harwood House among them. This is why the Annapolis Historic District is a National Historic Landmark and why architectural historians keep showing up. It isn't a recreated colonial village. It's the original buildings, still on the original street plan, still being used.

Then the country happened here for about nine months. The Maryland State House, begun in 1772, is the oldest state capitol still in continuous legislative use, and its wooden dome was built with wooden pegs rather than nails. From late 1783 into 1784, it served as the capital of the United States. George Washington resigned his commission as commander of the Continental Army in that building, and the Treaty of Paris ending the Revolutionary War was ratified there. Annapolis was, briefly and genuinely, the seat of the national government.

And then Baltimore won the shipping argument. This is the turn most people don't know, and it explains the city's whole character. After the Revolution, the regional economy shifted from tobacco toward grain and milling, and Baltimore — with a deeper harbor and better access to the interior — took over as the port that mattered. Annapolis could have faded. Instead it kept the one thing Baltimore couldn't take: it was still the capital. The city became a government town with a preserved 18th-century downtown, largely because it didn't have the industrial boom that would have bulldozed it.

The Navy arrived and re-anchored the city to the water. In 1845, the Naval School was established at Fort Severn on the harbor, and it grew into the U.S. Naval Academy. That single decision reshaped Annapolis permanently — physically, in the Academy's campus along the water; culturally, in the rhythm of a town that lives alongside an institution; and practically, in the way the city's population and traffic move. Walk out Maryland Avenue from State Circle and you'll run straight into the Academy gate. That street is a good three-minute summary of the entire city: state government at one end, the Navy at the other, antique shops and row houses in between.

The sailing identity is the newest layer, and the one people notice first. Annapolis calls itself America's Sailing Capital, and the claim holds up: sailmakers, riggers, brokers, race committees, sailing schools, and the annual boat shows all cluster here. The narrow channel at City Dock has a nickname — Ego Alley — because boaters cruise in, get admired, and turn around. Across Spa Creek, Eastport grew up as the working maritime side of town, full of boatyards and marine trades, and it still carries that identity with a sense of humor about itself. When people say Annapolis is a sailing town, they're describing the most recent chapter of a story that started with tobacco freight.

Why any of this matters when you're buying a house here. Because the history isn't decorative — it's operational. The street plan determines how you get around. The historic district's architectural review process determines what you can change about a downtown house's exterior. The Academy and the state government determine when downtown is busy. The maritime economy determines who your neighbors work for. And the compact colonial footprint is why walkability downtown is real and parking downtown is not.

There's one more thing, and it's the reason I like showing people this town. St. John's College, tracing its roots to a school chartered in the 1690s, still sits a few blocks from a state house where the Revolution formally ended, which sits a few blocks from a dock that handled colonial freight and now handles kayaks. Nothing here got replaced. It just got layered.

If you're moving to the Annapolis area and want the version of this conversation that includes which part of it you'd actually want to live in, let's get coffee.

Local REALTOR® tips

  • Walk from Church Circle down Main Street to the water before you tour a single downtown house. Ten minutes on foot teaches you more about how the city works than an hour of listings.
  • If a home is in the historic district, ask about exterior architectural review before you fall for the idea of new windows, a new roof profile, or a different front door.
  • Drive the radial streets once at rush hour. The colonial plan is charming and it is also a funnel — know which spokes you'd be using daily.
  • Ask what the parking situation actually is for a specific downtown address, in writing. Permits, off-street spaces, and alley access vary house to house.
  • Older doesn't mean fragile, but it does mean specific. For an 18th- or 19th-century house, use an inspector who works on historic construction regularly.

Frequently asked questions

When was Annapolis founded?
Settlers arrived at the mouth of the Severn in 1649. The settlement carried several names before becoming Annapolis in 1694, when Maryland's capital relocated there from St. Mary's City.
Why is Annapolis named Annapolis?
It was named for Princess Anne, who later became Queen Anne, at the time the capital moved in 1694.
Why are the streets in downtown Annapolis laid out in circles?
Governor Francis Nicholson laid the city out on a baroque plan rather than a grid — two circles, State Circle and Church Circle, on the high ground with streets radiating outward, and the state house placed where it could be seen from across town.
Was Annapolis ever the capital of the United States?
Yes. The Maryland State House served as the seat of the U.S. government from late 1783 into 1784. George Washington resigned his commission there, and the Treaty of Paris was ratified there.
What is the oldest state capitol in the United States?
The Maryland State House in Annapolis is the oldest state capitol still in continuous legislative use. Construction began in 1772.
Why did Annapolis stop being a major port?
After the Revolution, the regional economy shifted toward grain, and Baltimore's deeper harbor and better inland access made it the dominant port. Annapolis remained the state capital and kept its 18th-century downtown largely intact.
When was the U.S. Naval Academy founded in Annapolis?
The Naval School was established at Fort Severn on the Annapolis harbor in 1845 and became the U.S. Naval Academy.
What is the Annapolis Historic District?
A National Historic Landmark district covering the colonial core of the city, containing a notable concentration of surviving 18th-century buildings on the original street plan.
What is the Kunta Kinte–Alex Haley Memorial?
A memorial at City Dock marking the 1767 arrival of the ship Lord Ligonier and the ancestor Alex Haley wrote about in Roots, commemorating the arrival of enslaved Africans at the Annapolis waterfront.
Why is the City Dock channel called Ego Alley?
It's a local nickname for the narrow waterway where boaters cruise in past the dock, turn around, and cruise back out — in full view of everyone on shore.
Does buying a home in the historic district come with extra rules?
Generally yes. Properties in a historic district are typically subject to architectural review for exterior changes. Verify the specific requirements for any address with the City of Annapolis before you plan a renovation.

Moving to the Annapolis area and trying to figure out where you'd actually fit in it? I'm James Blackwell, broker at Blackwell Real Estate — I've been showing people this county for years, history lesson included at no extra charge. Reach out for the coffee-conversation version about your situation.

James Blackwell, Broker · Blackwell Real Estate, LLC · Licensed in MD, DC, VA & DE · Equal Housing Opportunity. This article is general information, not legal advice — verify current historic-district, permitting, and zoning requirements with the City of Annapolis and Anne Arundel County for any specific property.