Watervliet (wôˌtərvlētˈ, wôˈtərvlētˌ, wŏˈ–) [key], industrial city (1990 pop. 11,061), Albany co., E N.Y., on the Hudson River, opposite Troy, near the terminus of the Erie Canal; founded by the Dutch 1625, inc. as a city 1896. The U.S. arsenal there, which specializes in the production of heavy ordnance, was established in 1813. Steel products and specialty tapes are also made. In 1776, Ann Lee founded the first American community of Shakers in Watervliet.