Financed by the late Robert Fulton's estate, the Ontario was built with the hopes that it would fare well commercially, and prove efficient on the often windy and turbulent Great Lakes.

[2][3] Preliminary to the construction of the Ontario, articles of agreement were drawn up in 1815 for Harris Fulton and William Cutting of New York, the executors of the estates of the late Robert Fulton, Robert Livingston,[b] and Charles Smyth, Thomas Duane and David Boyd, who were now the owners of the rights and privileges of steamboat navigation in New York State.

The agreement gave Smyth and Joseph C. Yates the sole right for employment of steam navigation on Lake Ontario.

Her construction was financed by a grant from the heirs of Robert Fulton, and marked the beginning of an important era in steamboat navigation.

Subsequently, construction of Ontario commenced at Sackets Harbor, using a large quantity of surplus lumber and supplies left there after the War of 1812 by, and purchased from, the U.S.

When the Ontario was launched, untested in rough waters, it was assumed that the enormous weight of the paddle wheels and shaft were enough to keep the apparatus in place on their bearings.

[8] Still, the large and momentous waves lifted and heaved the paddle wheels off from their bearings, which tore away the wooden coverings, forcing the captain to turn about and discontinue the voyage.