Hawaii's transition to a U.S. territory followed decades of increasing American involvement in the islands, driven largely by economic interests, particularly in sugar cultivation. The overthrow of Queen Liliʻuokalani in 1893 by a group of American and European businessmen, which led to the establishment of a provisional government, set the stage for annexation. In 1898, the U.S. Congress passed the Newlands Resolution, which formally annexed Hawaii. The organic act signed by President William McKinley established the territorial government, which legally began its operation in 1900 under the leadership of Sanford B. Dole.

Sanford B. Dole, a key figure in the annexation movement, became the first territorial governor of Hawaii. Dole's role was pivotal in creating a local government aligned with U.S. interests while also promoting the integration of Hawaiian culture and governance into the American political framework. His administration focused on establishing infrastructure, education systems, and developing the economy while also facing challenges such as the transition from royal rule to a republican form of government.

Dole's governance emphasized cooperation with the established sugar industry and facilitated the immigration of laborers from Asia, impacting Hawaii's demographic composition. The new territorial status meant that Hawaii could send a delegate to Congress, although this representative did not have voting privileges. Dole's leadership reflected both the opportunities and complexities of Hawaii's relationship with the continental United States, laying the groundwork for future political developments.