Albany's essential nature was commercial. Initially, the community economy was based on the fur trade. By 1686, Albany was evolving into a place where regional farmers bartered their crops and forest products for imported and locally crafted items; where they came to have tools and other things repaired; and where they found spiritual and legal guidance. By that time, city people had begun to divide into business, production, and service enterprises - although most Albanians engaged in some of all three activities. The Dongan Charter further enhanced Albany's status and the English fort provided the community with its first great government enterprise.

The fledgling community granted a city charter in 1686 was in reality a town of about 120 buildings - clustered together city-style and encircled by a tall, wooden stockade. Seventeenth century Albany had four principal public buildings. The city hall was located near the water on Court Street; the Dutch Reformed Church set in the middle of the city's main intersection; a smaller Lutheran Church which often was without a pastor; and a more imposing wooden fort located up the hillside and overlooking the community.