 Lacking an effective central government under the Articles of Confederation, the states quarreled among themselves, and some even established proprietary regulations, tariffs, and currency.To ensure mutually profitable commerce on their shared waterways, the Virginia and Maryland legislatures recognized the need for an agreement between the two states regarding the jurisdiction of the waters.This awareness led to the chartering (in Maryland-1784 and in Virginia-1785) of the Potomac Company to make improvements to the Potomac River and improve its navigability beyond its fall line for commerce.