Transylvania was an attempt in the 1770s by the Transylvania Company to found a new American colony by buying land from Native Americans. Their first settlement was Boonesborough (now in Kentucky) in 1775. It was named after Daniel Boone, who had built a small fort there under orders from the Transylvania Company.

The colony's borders ran between the Tennessee River and the Ohio River. Transylvania had its own governor and legislature until 1776 when Virginia declared the region the County of Kentucky.

Since Boonesboro was within the Virginia wilderness claim, the United States Congress refused to grant Transylvania separate status. Virginia compensated the speculators with a gift of 200,000 acres (809 km²).