The Compact of 1806 was intended to settle a complicated dispute about public lands between the United States government, Tennessee, and North Carolina. Under the agreement Tennessee set aside two hundred thousand acres of “public land,” the sale of which would benefit academies and colleges. The Tennessee General Assembly divided the land, with the proceeds from the sale of one hundred thousand acres to support two colleges, one in Middle Tennessee and one in East Tennessee. Blount College officials obtained the East Tennessee portion of the endowment in 1807. The first funds received by East Tennessee College from the sale of public lands by the State of Tennessee were $5,000 in 1826. In all, the university received approximately $74,000 from the sale of this land or compensating settlements from the State of Tennessee.