In 1492, Christopher Columbus sailed from Spain on his first voyage with three ships, the Niña, the Pinta, and the flagship, Santa Maria, seeking a direct route to Asia. On 12 October, Columbus reached an island in the Bahamas and claimed it for Spain, an event long regarded by Europeans as the "discovery" of America. This island was called Guanahani by the Lucayan, and San Salvador by the Spanish. The identity of the first American landfall by Columbus remains controversial, but many authors accept Samuel E. Morison's identification of Columbus' San Salvador as what was later called Watling (or Watling's) Island. Its name has been officially changed to San Salvador. Columbus visited several other islands in the Bahamas before sailing to present-day Cuba and afterwards to Hispaniola.

The Bahamas held little interest to the Spanish except as a source of slave labor. Nearly the entire population of Lucayan (almost 40,000 people total) were transported to other islands as laborers over the next 30 years. When the Spanish decided to remove the remaining Lucayans to Hispaniola in 1520, they could find only eleven. The islands remained abandoned and depopulated for 130 years afterwards. With no gold to be found, and the population removed, the Spanish effectively abandoned the Bahamas. They retained titular claims to them until the Peace of Paris in 1783, when they ceded them to Britain in exchange for East Florida.

When Europeans first landed on the islands, they reported the Bahamas were lushly forested. Cleared to develop the land for sugarcane plantations, the forests have not regrown and have not been replanted.

For many years, historians believed that the Bahamas was not colonised until the 17th century. However, recent studies show that there may have been attempts of colonisation by groups from Spain, France, Britain, and the Netherlands. In 1565 a group of French Huguenots settled on Abaco and were never heard of again.

In 1648, a group from Bermuda called "The Company of Adventurers for the Plantation of the Islands of Eleutheria", which was led by William Sayle, sailed to the Bahamas to found a colony. These early settlers were Puritans and republicans. Bermuda was becoming overcrowded, and the Bahamas offered both religious and political freedom and economic opportunity. The larger of the company's two ships, the William, wrecked on the reef at the north end of what is now called Eleuthera Island, with the loss of all provisions.

Despite the arrival of additional settlers, including Europeans, slaves and former African slaves from Bermuda and the receipt of relief supplies from Virginia and New England, the Eleuthera colony struggled for many years, hampered by poor soil, fighting between settlers, and conflict with the Spanish. In the mid-1650s, many of the settlers returned to Bermuda. The remaining settlers founded communities on Harbour Island and Saint George's Cay (Spanish Wells) at the north end of Eleuthera. In 1670 about 20 families lived in the Eleuthera communities.

In 1666 other colonists from Bermuda settled on New Providence, which soon became the centre of population and commerce in the Bahamas, with almost 500 people living on the island by 1670. Unlike the Eleutherians, who were primarily farmers, the first settlers on New Providence made their living from the sea, salvaging (mainly Spanish) wrecks, making salt, and taking fish, turtles, conchs and ambergris. Farmers from Bermuda soon followed the seamen to New Providence, where they found good, plentiful land. Neither the Eleutherian colony nor the settlement on New Providence had any legal standing under English law. In 1670, the Proprietors of Carolina were issued a patent for the Bahamas, but the governors sent by the Proprietors had difficulty imposing their authority on the independent-minded residents of New Providence.

The early settlers continued to live much as they had in Bermuda, fishing, hunting turtles, whales, and seals, finding ambergris, making salt on the drier islands, cutting the abundant hardwoods of the islands for lumber, dyewood and medicinal bark; and wrecking, or salvaging wrecks. The Bahamas were close to the sailing routes between Europe and the Caribbean, so shipwrecks in the islands were common, and wrecking was the most lucrative occupation available to the Bahamians.
The Bahamians soon came into conflict with the Spanish over the salvaging of wrecks. The Bahamian wreckers drove the Spanish away from their wrecked ships, and attacked Spanish salvagers, seizing goods the Spanish had already recovered from the wrecks. When the Spanish raided the Bahamas, the …

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Starting in 1713, Woodes Rogers had conceived the idea of leading an expedition to Madagascar to suppress the pirates there and establish it as a British colony. Rogers' friends Richard Steele and Joseph Addison eventually convinced him to tackle the pirates' nest in the Bahamas, instead. Rogers and others formed a company to fund the venture. They persuaded the Proprietors of Carolina to surrender the government of the Bahamas to the king, while retaining title to the land. In 1717 King George appointed Rogers governor of the Bahamas and issued a proclamation granting a pardon to any pirate who surrendered to a British governor within one year.

Word of the appointment of a new governor and of the offer of pardons reached Nassau ahead of Rogers and his forces. Some of the pirates were willing to accept a pardon and retire from piracy. Henry Jennings and Christopher Winter, sailed off to find British authorities to confirm their acceptance of the amnesty.

Others were not ready to give up. Many of those were Jacobites, supporters of the House of Stuart, who identified as enemies of the Hanoverian King George. Still others simply identified as rebels, or thought they were better off as pirates than trying to earn an honest living. When a Royal Navy ship brought official word to Nassau of the pardon offer, many pirates planned to accept. Soon, however, the recalcitrant parties gained the upper hand, eventually forcing the Navy ship to leave.

Blackbeard, Stede Bonnet, Nicholas Brown and Edmond Condent left the Bahamas for other territories. Charles Vane, with "Calico Jack" Rackham and Edward England in his crew, came to prominence at this time. Vane worked to organise resistance to the anticipated arrival of Royal authority, even appealing to James Francis Edward Stuart, the Stuart pretender, for aid in holding the Bahamas and capturing Bermuda for the Stuarts. As aid from the Stuarts failed to materialise and the date for Rogers' arrival approached, Vane and his crew prepared to leave Nassau.

Woodes Rogers arrived in Nassau in late July 1718, with his own 460-ton warship, three ships belonging to his company, and an escort of three ships of the Royal Navy. Vane's ship was trapped in Nassau harbor. His crew set that ship on fire, sending it towards Rogers' ships, and escaped in the ensuing confusion in a smaller ship they had seized from another pirate. The remaining population welcomed Rogers; they comprised about 200 settlers and 500 to 700 pirates who wanted to receive pardons, most prominently Benjamin Hornigold. After the pirates' surrender, the Proprietors leased their land in the Bahamas to Rogers' company for 21 years.

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