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The first detailed documentation shows that in 1511 there were only thirteen resident households in the settlement clustered north of the harbour, most of the property there classifying as " chambers " ( unoccupied, unheated, single-celled structures ) for which rent was paid by non-residents including clergy, officials and landowners from elsewhere on the Island.
This suggests that the origins of the town's nucleus were as a non-urban port.
Current speculation links the store-buildings with the Irish Sea Herring fishery, and the import / export trade.
In 1681 Thomas Denton described Douglas as " The place of greatest resort " on the Isle of Man, and by 1705 a clear picture of the early town emerges, with hints that its residential, market, and military defence functions were growing in importance alongside the port facility.
The ensuing sixty years saw the town thrive as imposing merchants ' houses, large warehouses, quays and a pier were provided to accommodate the burgeoning ' Running Trade ' ( smuggling ): one of the stimuli for the town to expand.
Other forms of trade also grew, and following the Revestment Act of 1765, Douglas began to reap the benefits of trans-Atlantic trade, due to the discovery of the New World, and co-operation on a local level with Liverpool.
Legitimate merchants who rose to prominence over the period included the Murreys, the Moores, and the Bacons.
The town's later prosperity was facilitated by the low cost of living, and favourable legal status enjoyed by English debtors and half pay officers.
The initial growth and development of the town owed much to its natural harbour ( now the Inner Harbour ), since greatly expanded and improved.
Over the course of the 18th century, the town's population rose significantly, from 800 ( approx.
) in 1710 to nearly 2, 500 in 1784.

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