Fort Erie, town in the regional municipality of Niagara, southern Ontario, Canada, on Lake Erie and the Niagara River. Fort Erie is a port of entry and is linked by bridge with Buffalo, New York, across the Niagara River. Manufactures include aircraft parts, chemicals, pharmaceuticals, metal and plastic products, processed food, batteries, and parachutes. One of Canada's largest horse-racing tracks is in Fort Erie. The town is also a summer vacation spot, and many cottages are located along Lake Erie. The community developed around a fort constructed here by the British in 1764. The fort was occupied and badly damaged by United States troops during the War of 1812. It was restored in the 1930s. The village around the fort merged with the town of Bridgeburg in 1931 to become the town of Fort Erie. Population 23,253 (1986); 27,183 (1996).