 From this point until the arrival of United Empire Loyalists following the American War of Independence, the region was only sporadically inhabited, as the Iroquois did not establish permanent settlements in the area.The Niagara Peninsula then became one of the first areas settled in Upper Canada by British Loyalists in the late 18th century.The capital of the new colony was established with the founding of Niagara-on-the-Lake, then called Newark.