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The first permanent European-American settlement in Jefferson County, likely started in the early 1700s. Land speculators Joist Hite and the Van Meter family sold land to German and English immigrants. Later, settlers from Virginia's Tidewater area also arrived, with many receiving land from Lord Thomas Fairfax. Conflicts over land ownership led to a long lawsuit between Hite and Fairfax, which wasn't settled until 1786.
In the 1740s and 1750s, George Washington surveyed land in the area for Fairfax and bought his first property. His family became successful in the region, and many Washington descendants are buried in Jefferson County.
The county had a mix of German, English, Scotch-Irish, and Southern settlers. Economic connections were made with nearby cities like Baltimore, Hagerstown, and Martinsburg. Although the enslaved population was small in the 1700s, it grew to nearly 4,000 people by 1850, making up 27% of the population.
Jefferson County’s economy was mostly agricultural, with crops like grain and fruit, and limestone quarrying was also important. Iron production began along the Shenandoah River in the 1700s and continued until World War I.