Pondicherry waterfront circa 1900
The history of the city of Pondicherry is recorded only after the arrival of Dutch, Portuguese, British and French colonialists. By contrast, nearby places such as Arikamedu, Ariyankuppam, Kakayanthoppe, Villianur and Bahur, which were colonised by the French East India Company over a period of time and which later became the union territory of Pondicherry, have recorded histories that predate the colonial period.
A marketplace named Poduke or Poduca is recorded as a Roman trading destination from the mid 1st century. The area was part of the Pallava Kingdom of Kanchipuram in the 4th century. The Cholas of Thanjavur held it from the 10th to 13th centuries, only to be replaced by the Pandya Kingdom in the 13th century. The Vijayanagar Empire took control of almost all of the South of India in the 14th century and maintained control until 1638 when they were supplanted by the Sultan of Bijapur.
The French East India Company established this town as their headquarters in 1674. Five trading posts were established along the south Indian coast between 1668 and 1674. The town was separated by a canal into the French Quarter and the Indian Quarter.
During the Anglo-French wars (1742–1763), Puducherry changed hands frequently. On January 16, 1761, the British captured Puducherry from the French, but the Treaty of Paris (1763) at the conclusion of the Seven Years' War returned it. The British took control of the area again in 1793 at the Siege of Pondicherry amid the Wars of the French Revolution, and returned it to France in 1814. When the British gained control of the whole of India in the late 1850s, they allowed the French to retain their settlements in the country. Pondicherry, Mahé, Yanam, Karaikal and Chandernagor remained a part of French India until 1954 when it was incorporated into the Indian Union along with the rest of French India.
On 18 October 1954 in a general election involving 178 people in Pondicherry Municipal and Commune Panchayat, 170 people were in favour of independence and eight people voted against. The de facto transfer of the French Indian territories from French governance to the Indian union took place on 1 November 1954, and was established as the union territory of Pondicherry. However, the formal de jure transfer of territory agreement between France and India was signed on 16 August 1962.