Nassau was formerly known as Charles Town; it was burned to the ground by the Spanish in 1684 during one of their frequent wars with the English. It was rebuilt and renamed to Nassau in 1695 under Governor Nicholas Trott in honour of the Dutch Stadtholder (stadhouder in Dutch) and later also King of England, Scotland and Ireland, William III from the Dutch House of Orange-Nassau. The name Nassau derives from the House of Nassau and ultimately from the town of Nassau, Rhineland-Palatinate in Germany.[4]
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Due to a lack of effective governors (after Trott), Nassau fell on hard times. In 1703 Spanish and French allied forces briefly occupied Nassau. From 1703 to 1718 there was no governor in the colony and by 1713, the sparsely settled Bahamas had become a pirate haven. The Governor of Bermuda stated that there were over 1,000 pirates in Nassau and that they outnumbered the mere hundred inhabitants of the town. They proclaimed Nassau a pirate republic, establishing themselves as "governors". Examples of pirates that used Nassau as their base are Charles Vane, Thomas Barrow, Benjamin Hornigold, Calico Jack Rackham, Anne Bonny, Mary Read, and the infamous Edward Teach, better known as "Blackbeard".
In 1718, the British sought to regain control of the islands and appointed Captain Woodes Rogers as Royal governor. He successfully clamped down on the pirates, reformed the civil administration, and restored commerce. Rogers cleaned up Nassau and rebuilt the fort, using his own wealth to try to overcome problems. In 1720 the Spanish made an unsuccessful attempt to capture Nassau.
During the wars in the Thirteen Colonies, Nassau experienced an economic boom. With funds from privateering, a new fort, street lights and over 2300 sumptuous houses were built and Nassau was extended. In addition to this, mosquito breeding swamps were filled.
In 1776, the Battle of Nassau resulted in a brief occupation by American Continental Marines during the American War of Independence, where the Marines staged their first amphibious raid on Fort Montague after attempting to sneak up on Fort Nassau. In 1778 after an overnight invasion, American raiders led by Captain Rathburn, left with ships, gunpowder and military stores after stopping in Nassau for only two days. In 1782 Spain captured Nassau for the last time when Don Juan de Cagigal, governor-general of Cuba, attacked New Providence with 5000 men. Andrew Deveaux, an American Loyalist who resettled on the island, set forth to recapture Nassau for the British Crown and with 220 men and 150 muskets to face a force of 600 trained soldiers.
Lord Dunmore governed the colony from 1787 to 1796. He oversaw the construction of Fort Charlotte and Fort Fincastle in Nassau.
During the American Civil War, Nassau served as a port for blockade runners making their way to and from ports along the southern Atlantic Coast for continued trade with the Confederacy.
In the 1920s and 1930s, Nassau profited from Prohibition in the United States.
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