Northwest Ordinance was created in 1787. It provided for the government of the territory north of the Ohio River. However, it was the foundation for all other American territorial governments. It established how the territory could eventually become a state, and it guaranteed basic freedoms for its inhabitants. States carved from the Northwest Territory include Illinois, Indiana, Wisconsin, Ohio, Michigan, and Minnesota. Idea: Older children could read a transcript of the document at: Northwest Ordinance. Children could find out how a territory became a state.