The Land Ordinance of 1785 was adopted by the United States Congress

Congress of the Confederation

The Congress of the Confederation or the United States in Congress Assembled was the governing body of the United States of America that existed from March 1, 1781, to March 4, 1789. It comprised delegates appointed by the legislatures of the states. It was the immediate successor to the Second...

 on May 20, 1785. Under the Articles of Confederation

Articles of Confederation

The Articles of Confederation, formally the Articles of Confederation and Perpetual Union, was an agreement among the 13 founding states that legally established the United States of America as a confederation of sovereign states and served as its first constitution...

, Congress did not have the power to raise revenue by direct taxation of the inhabitants of the United States. Therefore, the immediate goal of the ordinance was to raise money through the sale of land in the largely unmapped territory west of the original states acquired at the 1783 (Treaty of Paris)

Treaty of Paris (1783)

The Treaty of Paris, signed on September 3, 1783, ended the American Revolutionary War between Great Britain on the one hand and the United States of America and its allies on the other. The other combatant nations, France, Spain and the Dutch Republic had separate agreements; for details of...

 after the end of the Revolutionary War.