In March 1663, King Charles II of England issued a charter granting the province of Carolina to eight Lords Proprietor, individuals who had steadfastly supported his return to the throne during the English Civil War. The charter delineated the boundaries of the vast territory stretching from the Atlantic Ocean to the Pacific Ocean and set the framework for governance. These Lords Proprietor were responsible for promoting settlement and development in this new colony, which was seen as an opportunity for economic growth and a buffer against Spanish Florida. This charter was significant not only for the political implications but also for the hope it embodied for the future of English colonization in North America.

The Lords Proprietor included prominent figures such as William Berkeley, Sir John Colleton, and Edward Hyde, providing both political and financial support for the venture. Their goal was to create a thriving agricultural economy reliant on tobacco and other cash crops, drawing settlers from England and other colonies. The charter also allowed for significant autonomy, permitting the Proprietors to establish the laws and structure of government as they saw fit, leading to a unique proprietary system that differed from royal colonies.

The establishment of Carolina attracted a diverse group of settlers, including planters from Barbados, which influenced the social and economic framework of the region. Despite the initial optimism, the colony faced challenges, including conflicts with Native American tribes and internal divisions among the settlers. Nevertheless, the charter of 1663 laid the groundwork for the future growth and development of the region that would eventually split into North and South Carolina.