And the men who settled the States in the West were colonists from the older communities.

The Americans had so recently asserted their independence that they regarded the name of colony as not merely indicating dependence but as implying something of inferiority and even of reproach.

And when the American colonial system was being formulated in 1783-87 the word "Colony" was not used.

The country under consideration was the region west of the Alleghany Mountains and in particular the territory north and west of the Ohio River and, being so referred to in the documents, the word "Territory" became the term applied to all the colonies.
The Northwest Territory increased so rapidly in population that in 1800 it was divided into two districts, and in 1802 the eastern part was admitted into the Union as the State of Ohio.

The rest of the territory was divided in 1805 and again in 1809; Indiana was admitted as a State in 1816 and Illinois in 1818.