Berkeley and Carteret try to entice more settlers to New Jersey in 1665 by granting land to settlers and by passing the Concession and Agreement, a document granting religious freedom to all inhabitants of New Jersey; the British Church of England allows no such religious freedom.

It is issued as a proclamation for the structure of the government for the colony written by the two proprietors.

In return for land, settlers pay annual fees known as quitrents.

The proprietors appoint Philip Carteret, George Carteret’s cousin, as the first governor of New Jersey, who designates Elizabethtown as the colony's capital.