It was for commercial reasons that the early French fur traders built a trading post on the site in 1753. Then, in 1764, shortly after the ceding of New France to Britain at the close of the Seven Year 's War, the British began "the construction of the first Fort Erie on the riverbank somewhat east of its present location. During the next fifty years, Fort Erie was a stop-over for ships carrying merchandise, troops and passengers to the Upper great Lakes.
However, in March, 1779, this Fort was destroyed by masses of ice driven ashore by a furious storm . A second fort was begun on the river's edge, directly in front of the present site. This lasted until 3 February 1803, when it, too was destroyed by a storm.
On 9 January 1804, approval was granted to build a third Fort Erie on the knoll immediately behind the old position. This fort was still in an unfinished state when war with the United States began in 1812. But, on 27 May 1813, on the approach of an American army which had captured Fort George at the northern end of the Niagara River, it was partially dismantled and the powder magazine blown up by the small resident British garrison. The invading United States troops held Fort Erie until 9 June, then burned the buildings and marched back to Fort George to assist in a major offensive underway there.
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