The Northwest Ordinance institutes different procedures that territories must go through in order to be considered for statehood. Here are the steps these territories had to go through:
1) When the population is below 5,000, a governor, secretary, and three judges would be appointed by Congress.
2) When the population reaches 5,000 free men, those free men can elect a legislature. The appointed members by Congress remain and the governor keeps veto power over the legislature.
3) When the population reaches 60,000 free men, the legislature can write a state constitution that needs to be approved by the US Congress. If approved, the territory becomes a state.
