Book excerpt: Located in the Lehigh Valley along the Lehigh River, Bethlehem was founded by Moravian settlers in 1741. In 1845, the traffic on the Lehigh Canal convinced the Moravians to open the town to outsiders who could purchase their land and buildings. The former Moravian farmlands south of the river were soon developed into railroad lines, industrial mills, homes, and Lehigh University. One of the mills evolved into Bethlehem Steel, once the second-largest steelmaker in the United States.