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In 1664, the city was named in honor of the Duke of York (the future James II & VII), who would go on to become King James II of England. The name New York is derived from a word for "nymph" or "mermaid", which may have been the name given to an American Indian village at Manhattan's current location by Native Americans.The area now known as New York City was inhabited by Lenape Native Americans and then colonized by Dutch settlers during the 17th century; it became a British colony in 1664. The city and its surroundings came under English control in 1674 and were renamed New York after King Charles II of England granted his brother, Sir William Penn, permission to sail into what is now Upper New Jersey instead of returning him to prison upon his release from captivity—as he had promised Penn earlier when he offered him freedom if he did not attempt escape again—and thus could be considered one who has committed no crime but rather done good service for two kings: His Majesty's father [Charles I] as well as His Majesty himself.