The Land Ordinance of 1785 was adopted by the United States Congress of the Confederation on May 20, 1785. It set up a standardized system whereby settlers could purchase title to farmland in the undeveloped west. ... The Land Ordinance established the basis for the Public Land Survey System.
The Ordinance of 1785 put the 1784 resolution in operation by providing a mechanism for selling and settling the land, while the Northwest Ordinance of 1787 addressed political needs. The 1785 ordinance laid the foundations of land policy until passage of the Homestead Act of 1862.
On April 15, 1800, the government approved the Harrison Land Act. Under this law, people had the opportunity to buy land in the Northwest Territory directly from the federal government. The purchasers also could use credit to make part of their purchase.