Why did the Erie Canal encourage settlement in upstate New York and western territories?

The Erie Canal encouraged settlement in upstate New York and western territories primarily by drastically reducing the cost and difficulty of transporting goods. Before the canal, moving bulk commodities by wagon was slow and expensive; the canal lowered transportation costs from $100 per ton to less than $10 per ton.12

This economic efficiency provided settlers with ready access to markets, allowing farm produce from the Midwest to flow eastward to New York City while manufactured goods were transported westward into new towns and villages. As a result, the canal served as a vital commercial artery that triggered the development of lively trade centers such as Syracuse, Rochester, and Buffalo. By creating the nation's first reliable east-west water trade link, the canal facilitated westward expansion and established a foundation for sustained economic growth in the region.12