The Mount Vernon Conference was a meeting of delegates from Virginia and Maryland held March 21–28, 1785, to discuss navigational rights in the states' common waterways. On March 28, 1785, the group drew up a thirteen-point proposal to govern the two states' rights on the Potomac River, Pocomoke River, and Chesapeake Bay. Known as the Mount Vernon Compact, formally titled as the Compact of 1785, this agreement not only covered tidewater navigation but also extended to issues such as toll duties, commerce regulations, fishing rights, and debt collection. Ratified by the legislature of both states, the compact helped set a precedent for later meetings between states for discussions into areas of mutual concern.
The circumstances that led to the conference began as the country emerged victorious from the Revolutionary War. Lacking an effective central government under the Articles of Confederation, the states quarreled among themselves, and some even established proprietary regulations, tariffs, and currency. To ensure mutually profitable commerce on their shared waterways, the Virginia and Maryland legislatures recognized the need for an agreement between the two states regarding the jurisdiction of the waters. This awareness led to the chartering (in Maryland-1784 and in Virginia-1785) of the Potomac Company to make improvements to the Potomac River and improve its navigability beyond its fall line for commerce. The company's goal was the linking of the East Coast with the trans-Appalachian northwest.
The conference was initially scheduled to begin March 21, 1785, in Alexandria, Virginia. Maryland delegates included Samuel Chase, Daniel of St. Thomas Jenifer, and Thomas Stone. From Virginia, Alexander Henderson and George Mason attended; James Madison and Edmund Randolph had been appointed but were not sufficiently notified of their appointments. None of Virginia's delegates were present when Maryland's arrived for the meeting.George Washington, who had been corresponding with Thomas Stone about the conference, offered them the hospitality of his Mount Vernon estate in Fairfax County, Virginia, while they waited, and then offered to host the gathering itself. Although not an official participant, Washington—with his authoritative knowledge of the issues and active interest in Potomac navigation—inspired the delegates and lent considerable prestige to the proceedings.