The Land Ordinance of 1785 was adopted on May 20, 1785, by the Congress formed by the Articles of Confederation. The Continental Congress was not able to tax citizens, so the ordinance's immediate goal was to raise money through the sale of land in the largely unmapped territory west of the original colonies acquired from Britain at the end of the Revolutionary War.
The ordinance was also significant for establishing a mechanism for funding public education. The sixteenth section in each township was reserved for the maintenance of public schools. Many modern schools are still located in section sixteen of their respective townships, although many were sold to raise money for public education.
The Continental Congress chose not to allow slavery in these lands, thus sparking debate between those pro and anti-slavery in the United States.