These settlements in North America were characterized by land grants awarded by the English Crown to individuals or groups. These individuals, termed proprietors, held considerable governing rights over the territory, including the power to appoint officials, enact laws, and administer justice, often with some oversight from the Crown. Pennsylvania, Maryland, and Delaware exemplify this colonial type.
The significance of this system lies in its reflection of English political and economic practices being transplanted to the New World. It provided a means for the Crown to reward loyal subjects and establish colonies without direct financial investment. These colonies often promoted religious toleration to attract settlers and generate revenue for the proprietor, contributing to a more diverse colonial landscape.