Radisson and Grosseilliers (both born in France) were among the first men to successfully reach the Hudson's Bay where they discovered that the majority of furs came from the northern forests. The newly discovered bay gave the easiest port access to this rich fur area. They travelled to France to obtain support in a major trading venture out of the bay. When no interest was shown in France, Grosseilliers and Radisson proceeded to London to try to secure financial support there. In 1667 Prince Rupert (cousin of Charles II) showed an interest in the venture. The following year two ships were dispatched for Hudson's Bay. Only one of them arrived safely in James Bay wherein Fort Charles was established. Trading began the following spring and the ship returned to England loaded with furs.

On May 2, 1670, a Royal Charter was granted by Charles II to the "Company of Adventurers From England Trading into the Hudson's Bay" (The Hudson's Bay Company). By 1685, forts were established at Rupert River, Moose Factory, Albany Factory, and Port Nelson (later York Factory). The trade carried on at these forts seriously affected French trade to the south. Colonization was not conducted by England during this period of time; however, the Hudson's Bay Company needed a large number of employees. These employees came to the new world as indentured servants of the company. The men were brought to the new world for 7 to 9 years; coming mainly from Ireland and Scotland (specifically the Orkney Islands). The Cree women of the cohabitated with these men and created what historically was known as the "Half-breeds".

In the thirty years that followed, battles were fought between the English and French over possession of key forts. In 1713, the Treaty of Utrecht gave the Hudson's Bay Company sole trading rights through the Hudson's Bay and Rupert's Land. The coureur des bois, however, continued their practice of journeying to Montreal in the spring with their furs to trade. These men became known as free traders (Metis). They came to town, traded their furs then returned to the wilds of Canada where their families were. The English Hudson's Bay men were encouraged to not fraternize with the Aboriginal women in the beginning, but later the Hudson's Bay Company eased up on this and the Englishmen began to establish families in the new world. The English Half-Breed families settled around the forts of the Hudson's Bay Company.

Frequent trips were made by The Hudson's Bay Company men into the interior to urge the Indians to do their trading at the port in Hudson's Bay but to no avail. By 1744 the first Hudson's Bay Company post in the interior had to be established at Cumberland House. Cumberland House was built on the Saskatchewan River approximately 20 miles upstream from the present Saskatchewan-Manitoba border.

The York Boat, which was designed by a Metis man and which the Hudson's Bay Company produced in 1795, was adopted as the basic form of transportation over the less efficient coureur des bois trade canoes. A York Boat could carry four tons of cargo, about three times that of a trade canoe. The land during the time of the fur trade was measured out in pipe lengths as none of the new land had been surveyed. Once every hour, paddling ceased and each man lit his pipe. They stopped for a smoke every four or five miles (6 or 8 km), so the routes were measured in "pipes". Today the descendants of the trip-men (many of whom are trappers in the northern regions of Canada) still measure their trap-lines in "pipes". Click here to view some of the means of transport from the fur trade

On to the formation of The NorthWest Company