Hoorn is said to have originated around 1300 at a drainage sluice in the West Frisian Omringdijk that served to discharge excess inland water, which was supplied from the hinterland via the Tocht (probably a dug watercourse), into the former Zuiderzee. The lock was equipped with an overtoom (a device with which barges and smaller ships could be moved over the dike). The favorable location offered good trading opportunities and activity arose around the lock and the first residents settled. The village grew into a city, which was named after its location in a bend in the dike. 'Horne' is the medieval word for bend or corner.
The city became great in the Golden Age. In addition to the Dutch East India Company (VOC), other, now less well-known, trading companies such as the West India Company (WIC) and the Northern Company were also based in Hoorn. Due to silting up of the port, Hoorn lost its major economic function in the 18th century.
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