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Before 1607, the Powhatan tribe had lived in the region. For centuries, the tribe recognized the value of this site, rich in natural beauty, and had one of their capitals here, also known as Powhatan. They knew it as a place to hunt, fish, play, and trade, and they also called it Shocquohocan, or Shockoe.The Christopher Newport Cross monument on the canal, commemorating the cross erected at the current site of Richmond by an English exploration party that claimed the site and the river for King James in 1607. The party was led by Capt. Christopher NewportIn 1606, James I granted a royal charter to the Virginia Company of London to settle colonists in North America. After the first permanent English-speaking settlement was established in April, 1607, at Jamestown, Captain Christopher Newport led explorers northwest up the James River, and on May 24, 1607, erected a cross on one of the small islands in the middle of the part of the river that runs through today's downtown area.

Richmond entered the twenty-first century in the process of undergoing several redevelopment initiatives. The city completed a $52 million restoration of the James River and Kanawha Canals, as well as the Haxall Canal, in 1999, which included a Canal Walk, designed to attract businesses such as restaurants and nightclubs to the area. The riverfront project has brought the 1.25-mile (2.01 km) corridor back to life, with trendy loft apartments, restaurants, shops and hotels winding along the Canal Walk, along with canal boat cruises and walking tours. Riverfront development continued in April 2003 with the start of construction of Riverside on the James, a 720,000 square foot (66,890 sq m) residential and office complex near Brown's Island between 10th and 12th Streets downtown. The project, costing $90 million, was completed in July 2005, and is expected to attract even more commercial development to the downtown area.