The area fell out of regular contact with Europeans until 1652, when Jan van Riebeeck and other employees of the Dutch East India Company (Dutch: Vereenigde Oost-Indische Compagnie, or simply VOC) were sent to the Cape to establish a halfway station to provide fresh water, vegetables, and meat for passing ships travelling to and from Asia. Van Riebeeck's party of three vessels landed at the cape on 6 April 1652. The group quickly erected shelters and laid out vegetable gardens and orchards, and are preserved in the Company Gardens. Water from the Fresh River, which descended from Table Mountain, was channelled into canals to provide irrigation. The settlers bartered with the native Khoisan for their sheep and cattle. Forests in Hout Bay and the southern and eastern flanks of Table Mountain provided timber for ships and houses. At this point, the VOC had a monopoly on trade and prohibited any private trade. The Dutch gave their own names to the native inhabitants that they encountered, calling the pastoralists "Hottentots," those that lived on the coast and subsided on shellfishing "Strandlopers," and those who were hunter-gatherers were named "Bushmen."
The first wave of Asian immigration to South Africa started in 1654. These first immigrants were banished to the Cape by the Dutch Batavian High Court. These Asians helped to form the foundation of the Cape Coloured and Cape Malay populations, as well as bringing Islam to the Cape. The first large territorial expansion occurred in 1657, when farms were granted by the VOC to a few servants in an attempt to increase food production. These farms were situated along the Liesbeeck River and the VOC still retained financial control of them. The first slaves were brought to the Cape from Java and Madagascar in the following year to work on the farms. The first of a long series of border conflicts between the inhabitants in the European-controlled area and native inhabitants began in 1658 when settlers clashed with the Khoi, who realised that they were losing territory.
Work on the Castle of Good Hope, the first permanent European fortification in the area, began in 1666. The new castle replaced the previous wooden fort that Van Riebeeck and his men built. Finally completed in 1679, the castle is the oldest building in South Africa.
Simon van der Stel, after whom the town of Stellenbosch is named, arrived in 1679 to replace Van Riebeeck as governor. Van der Stel founded the Cape wine industry by bringing grape vines with him on his ship, an industry which would quickly grow to be important for the region. He also promoted territorial expansion in the Colony.
The first non-Dutch immigrants to the Cape, the Huguenots, arrived in 1688. The Huguenots had fled from anti-Protestant persecution in Catholic France to the Netherlands, where the VOC offered them free passage to the Cape as well as farmland. The Huguenots brought important experience in wine production to the Cape, greatly bolstering the industry, as well as providing strong cultural roots.