The United States and Dakota leaders negotiated the Treaty of Traverse des Sioux on July 23, 1851, and Treaty of Mendota on August 5, 1851, by which the Dakota ceded large tracts of land in Minnesota Territory to the U.S. In exchange for money and goods,
the Dakota agreed to live on a 20-mile wide Indian reservation centred on a 150 mile stretch of the upper Minnesota River.
However, the United States Senate deleted Article 3 of each treaty during the ratification process. Much of the promised compensation never arrived, was lost, or was effectively stolen due to corruption in the Bureau of Indian Affairs. Also, annuity payments guaranteed to the Dakota often were provided directly to traders instead (to pay off debts which the Dakota incurred with the traders).