They all embarked at Dieppe in 1603: one vessel proceeded to Tadoussac; another, commanded by Du Pont Gravé, went to Campseau (Canso) and along the coast towards the island of Cape Breton, to look after certain adventurers trading there in contravention of the king's prohibition. De Monts, with Champlain, took his course to the coast of Acadia, and the weather being very favourable, in a month arrived off Cape la Héve. De Monts continued along the coast, seeking some convenient spot for his settlement, sending Champlain also with a pilot to examine the coast for the same purpose. They discovered a number of ports and rivers, and De Monts at last fixed on an island which he thought well adapted to his purpose; the situation strong, the land good, and the temperature mild. He therefore set about discharging his vessels and building shelter for his people, and when all that was done he sent back the ships with Mons. de Paitrincourt, who had replaced Du Pont Gravé as his lieutenant, and who had gone out to see the country with the intention of settling there.

During this time (fully three years) Champlain occupied himself in exploring the whole coast of Acadia (Nova Scotia), from Cape la Héve, in latitude 45° 5′ examining all the bays, creeks, mouths of rivers, and islands of the great Baye Françoise (so named by him), now the Bay of Fundy, coasting on to "Cape Fortuné," in latitude 41° 20′ (now Cape Cod), and a few leagues farther, to a headland, which, with a great shoal near it, he called "Mallebarre", from the dangers he had there experienced. To the northward he examined the land from Cape la Héve to Cape Canso and Cape Breton, and, his arduous labours terminated, he returned with De Monts to France in 1607.

On their arrival, they found that great complaints had been made by certain Bretons, Basques, and others, of the excesses committed by the captains of De Monts' vessels while on their cruise, and of the ill-treatment they had sustained from them and their crews, who had seized their property, detained their persons, and deprived them of all traffic that had hitherto been free to them; so that, if the king did not interfere and take some order about it, all that navigation would be lost, the customs diminished, themselves ruined, and their wives and children, poor and miserable, obliged to beg their bread. It seems, though, that the poor Bretons and their companions were able to bribe pretty highly; as, in consequence of this outcry, and the intrigues of some influential persons at court, who promised to equip and keep three hundred men in the country, the commission or privilege of De Monts was revoked, "as the price of a certain sum, which a certain person received, without the king's knowing anything about it," says Champlain.

Thus was De Monts rewarded for having expended upwards of one hundred thousand livres, and passed more than three years of great suffering, from long duration of the snows and extreme cold, and having lost more than half his people by the dreaded "maladie de terre", or earth sickness.

As compensation, however, for his losses, the Royal Council generously granted him six thousand livres; not in ready money, but to be paid by such vessels as should traffic in peltry, etc., in the new country; but De Monts was obliged to abandon even this mockery of a grant, finding the expense of collecting greater than the receipts. Champlain at this exclaims indignantly: "Thus were affairs managed in the Council of his majesty; may God pardon those whom He has called to Himself, and amend the living! Hé! bon Dieu! who would ever undertake anything, if all can be revoked in such a fashion, without carefully examining affairs before deciding. Those also who know least cry out the loudest, and pretend to know more than men of tried experience." He adds that there was one great defect in De Monts' expedition—the mixture of creeds, "as two contrary religions never produce much fruit for the glory of God among the heathen they wish to convert." "I have seen," says he, "the minister and our curé fight with their fists about differences of religion, and," he continues slyly, "I do not know which was the bravest or hit the hardest blows, but I do very well know that the minister complained sometimes to Mons. de Monts of having been soundly beaten; and in this way they cleared up the points of controversy. I leave you to think if it was very pleasant to behold. The savages were sometimes on one side, sometimes on the other; and the French, divided according to their different belief, said everything that was bad, both of one and the other religion. These quarrels were really the means of rendering the infidel more hardened in his infidelity."

In the following year (1608) De Monts, desirous of making another attempt, consulted with Champlain, who advised him to proceed direct to the river St. Laurence, with which he was well acquainted from the experience of his previous voyage. De Monts, adopting his advice, applied again to the king, who granted him another commission authorising him to make the desired settlement; and to enable him the better to bear the expenses, interdicted the trade in peltry to all others for one year.

Upon this De Monts fitted out two vessels at Honfleur, and named Champlain his deputy or lieutenant in New France. One of the ships was commanded by Du Pont Gravé, who sailed first for Tadoussac, and Champlain followed with all things necessary for the intended settlement, arriving happily at Tadoussac. He then landed his people and stores, and proceeded up the river to seek for a convenient spot for his purpose, and finding at the narrowest part of the stream a place called by the natives Quebec, which seemed suitable, he there resolved to establish his colony, and accordingly transported thither all his men and goods with as little delay as possible. He then immediately caused dwellings to be erected, gardens prepared and planted, and land cleared and sown.

It was on the 3rd of July, 1608, that Champlain first arrived at Quebec; the remainder of the season and the winter were fully occupied with the necessary works of lodging the people, apportioning and clearing land, getting supplies of firing, etc., and exploring the country in the more immediate neighbourhood. On the 18th of May in the next year, Champlain proceeded to examine the river above the new settlement. At the little island of St. Eloy, near the river St. Marie, he fell in with a body of two or three hundred Indians, "Algenquins and Ochotiquens," who were on their way to Quebec to beg his assistance (which they reminded him he had promised ten moons before to the son of their chief) against the Iroquois, with whom they were at deadly feud. Champlain promised his aid, and returned with them to the settlement, where they remained for five or six days feasting and rejoicing. From thence he wrote to Du Pont Gravé, who was at Tadoussac, begging him to join him as soon as possible; and so soon as he arrived Champlain again left Quebec with the Indians, and on the 1st of June arrived at Saint Croix with a boat furnished with all things necessary for the expedition. From thence he continued to the Iroquois river, but finding that he could not pass the first rapid with his boat, as the natives had assured him, he resolved to pursue the journey in the canoes of the Indians. The greater part of his men refused to follow him, but, resolved to fulfil his promise, and desirous of visiting a great lake and beautiful country in the enemy's territory, which had been described to him by his allies, he determined on proceeding, with only two of his men, who volunteered to accompany him.

On the 2nd of July, the expedition left the rapids and ascended the Iroquois river to the lake above mentioned, where they were met by some two hundred of the enemy; a battle ensued, in which Champlain, at one shot of his arquebuss loaded with four balls, killed two of their chiefs and wounded another, which equally astonished both his friends and the enemies, who seeing their chiefs fall, fled, abandoning the field of battle and their village to the victors, who, after making good cheer, singing, and dancing, set out on their return with some ten or twelve prisoners.

Champlain gave his name to the lake on whose borders the action was fought, which it still retains.