By 1790, the United States had evolved significantly from its 1783 territorial configuration, developing a more structured administrative framework under the new Constitution ratified in 1788.

Following Vermont's admission in 1791, the nation now comprised fourteen states. The original thirteen states remained the core: New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, South Carolina, and Georgia. Kentucky was preparing for statehood, obtained in 1792, having been carved from Virginia's territory.

The Northwest Territory represented the primary federal territorial holding, encompassing present-day Ohio, Indiana, Illinois, Michigan, Wisconsin, and parts of Minnesota. Governed under the Northwest Ordinance of 1787, it featured a three-stage progression toward statehood. Arthur St. Clair served as the first territorial governor, overseeing initial settlement and administration from the territorial capital at Marietta.

Created in 1790, the Territory South of the River Ohio (commonly known as the Southwest Territory; present-day Tennessee) was carved from North Carolina's western land cession. Unlike the Northwest Territory, slavery remained legal here, reflecting regional differences in territorial governance. William Blount served as territorial governor.

Under the new Constitution, federal authority over territories was significantly strengthened compared to the Articles of Confederation period. The federal government could now directly govern territories, collect taxes, and regulate commerce, providing more effective administration.

Several boundary disputes persisted. Georgia retained claims to western lands (future Alabama and Mississippi) that wouldn't be resolved until 1802. The northern boundary with British Canada remained imprecisely defined, while Spanish control of Florida and Louisiana created southern and western complications.

With regard to the Indigenous population, these nations continued controlling vast areas, particularly in the Great Lakes region, Southeast, and trans-Mississippi west, creating a complex reality where legal American claims often differed dramatically from actual territorial control.