This was the decade of the drag queen. It's a story seemingly confirmed by a painting that hangs at the New York Historical Society, purported to be Lord Cornbury, Queen Anne's governor of New York and New Jersey, but that painting's provenance and subject has long been questioned. Most historians also believe that much of Cornbury's reputation comes from rumors fabricated by rivals during and after his administration.
It may or may or may not be true then that the governor dressed in women's clothing, promenaded along the ramparts, or hid behind trees to pounce on his victims and shriek with laughter. What is certain is that he was despised by most of the population of New York.
Appointed in 1702 by Queen Anne, he resumed the unpopular practice of doling out vast expanses of land to favorites including Trinity Church, to whom Cornbury gave King's Farm, which ran up the west of Manhattan to present-day Christopher Street. (Another fortunate recipient was given acreage half the size of Connecticut.)
A fierce Anglican, Cornbury also tried to impose the Anglican Church on the residents. He gave a raise to the rector of Trinity Church and taxed the population to pay for it. In 1707, he had one of the founders of American Presbyterianism arrested for preaching without a license. More outrageously, after the city's first Presbyterian church was built (in Jamaica, Queens), Cornbury kicked out the minister and appointed an Anglican in his place.
Several influential New Yorkers, in hopes of ousting Cornbury, wrote to allies in England about his outlandish behavior, claiming that he dressed in women's clothing ("I represent a woman [Queen Anne] and ought in all respects to resemble her as faithfully as I can."), rode his horse into taverns and pocketed anything that wasn't bolted down.
In 1708, after Parliament changed hands, Cornbury was recalled and the city rejoiced...particularly the Presbyterians!
ALSO DURING THIS DECADE:
1702: The city's first slave code outlaws the enslavement of Indians and calls white "slavery" indentured servitude. Slavery, therefore, is restricted to those of African descent. The first slave uprising will take place ten years later.
1709: The city's first bar association is formed.
Sources: Gotham by Edwin G. Burrows and Mike Wallace; The Historical Atlas of New York City by Eric Homberger; New York: An Illustrated History by Ric Burns and James Sanders, with Lisa Ades.