- "We had here a rare opportunity; a chance to take something base and shape it into a government, made and maintained by men of vision. But in two years we pissed it away."
- ―Benjamin Hornigold to Charles Vane, 1718.[src]
New Providence was first settled around 1648 by English Puritans who had fled Bermuda for religious reasons. Originally called Charles-Towne, the city founded in the northeast of the island was renamed Nassau in 1695, in honor of King William III of the House of Orange-Nassau.
In 1715, during the Golden Age of Piracy, Nassau became the capital of the self-appointed Pirate Republic. The Republic operated under a revolutionary form of government, and was commonly visited by pirates, including Edward Kenway, Charles Vane, Jack Rackham, and the Republic's three founders: Benjamin Hornigold, James Kidd and Edward Thatch.
In May 1717, the pirates Alonzo Batilla and Olivier Levasseur arrived in Nassau, after deciding that Nassau would be the perfect place to store the Fragment of Eden they acquired from Samuel Bellamy. They were greeted by the pirate Christopher Condent, who informed them about the lack of food, water and rum in Nassau. This prompted Alonzo to attack a British merchant convoy nearby, thus providing food for the inhabitants of Nassau. Condent reminded Alonzo about the rum, which Alonzo would later recover from shipwreck. Alonzo then prevented Vane from attacking the Royal Navy to protect Nassau from attacks by the British. After escorting Vane back to the city, Alonzo learned that Levasseur had left, and he too left Nassau to search his friend. 
By early 1718, the city was suffering from crippling famine and sickness. As a result, Edward and Thatch set out to find medicine in order to help the city get on its feet. They were able to locate the cure in Charles-Towne and Edward brought it back to Nassau, along with the materials needed to mix more medicine.
In July of the same year, the newly appointed Governor of Nassau, Woodes Rogers, quickly asserted his control over the island. Headquartered in the city's fort, and working with his Navy attaché, Commodore Peter Chamberlaine, he established a blockade on Nassau's harbor, effectively imprisoning all pirates whether they accepted the King's pardon or not, and dissolved the young Pirate Republic. However, Kenway was able to eliminate Chamberlaine on his ship, and along with Vane and Rackham, destroyed the bulk of the blockade and escaped the island.
However, even with Chamberlaine dead and the fleet scuttled, the British still retained control of the island. Woodes Rogers remained as governor of the Bahamas until he was recalled by King George I, but returned for a second term, lasting from 1728 until his death in 1732.
Nassau also had its own Assassin bureau, headed by the brothers Upton and Vance Travers. Vance had designs to kill Upton and take control of the bureau and Upton's half of the map that the siblings shared, with the help of the Templar Jing Lang, but the two were swiftly eliminated by Edward Kenway.
- During Sequence 7, it is impossible to fast travel from or across Nassau, due to the British blockade and occupation.