This chapter explores the economic history of Gibraltar in the century or so after the allied occupation. Gibraltar was, of course, sufficiently attractive economically after 1704 to induce civilians to enter and settle, and eventually to bring up families there, but conditioning their experiences, positively and negatively, was the partition of Gibraltar, upon which stress has already been placed for its demographic consequences. It is difficult to trace precisely how, after 1704, the economy of Gibraltar developed and to say much that is exact about living standards during the first century or so of British rule, given the paucity of statistical data. Because the town of Gibraltar became a ‘free port’, there are not even sound figures for external trade. The chapter shows that the partition of the region of Gibraltar had very important consequences for the economy, occupations and living standards, and, by implication, for a common sense of identity among civilians. The principal determining factor was obviously the Treaty of Utrecht, which confirmed the transfer to Britain of sovereignty over the peninsula (only).