At the end of the French and Indian War, Britain had control over all of North America to the east of the Mississippi River. The colonists wanted to move westward toward the Ohio Valley area. The Indians were used to receiving presents from the French were upset that their friends were no longer there, which is what started Pontiac's Rebellion.
King George III wanted to establish a stronger government in the Colonies. To keep peace with the Indians, he issued the Proclamation of 1763. The Proclamation gave the land west of the Appalachian Mountains to the Indians for their Hunting Grounds. Any colonists who were already settled in this area were forced to return to the eastern side of the Appalachians. The territory given to the Indians was not to be a part of any colony and the colonists could not buy or trade for land in that area. This made a boundary limiting the colonists to the east side of the Appalachians. King George III did not realize how much territory he was giving the Indians.