Dayton was founded on April 1, 1796 by a small group of US settlers seven years before the admission of Ohio to the Union in 1803. The town was incorporated in 1805 and given its name after Jonathan Dayton, a captain in the American Revolutionary War and signer of the U.S. Constitution. Dayton was the home of aviation pioneers Wilbur and Orville Wright who funded their aviation endeavors with the proceeds of a successful bicycle shop in Dayton. It was also the home of the poet Paul Laurence Dunbar and of John H. Patterson, who founded a successful cash register business in Dayton, National Cash Register Corporation, or NCR, which eventually diversified and was corporation of great importance in the United States during the mid- to late-20th century.

In 1797, Daniel C. Cooper laid out the Mad River Road, the first overland connection between Cincinnati, Ohio and Dayton. This opened up the "Mad River Country" at Dayton and the upper Miami Valley to settlement.

The Miami and Erie Canal built in the 1830s connected the Dayton commerce from Lake Erie via the Great Miami River and served as the principal route of transportation for western Ohio until the 1850s.

The catastrophic Great Dayton Flood of March 1913 severely affected much of the city, stimulated the growth of suburban communities outside central Dayton in areas lying further from the Miami River and on higher ground, and led to the establishment of the Miami Conservancy District in 1914. The flood remains an event of note in popular memory and local histories. The high waters damaged some of the Wright Brothers' glass plate photographic negatives of their glider flights at Kitty Hawk and power flights over Huffman Prairie near Dayton.

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