The third major division of territories in the Hamburg Agreement of 1701 led to the creation of Mecklenburg-Strelitz and Mecklenburg-Schwerin. Adolphus Frederick II. of Mecklenburg-Strelitz had primogeniture in the succession to the throne and built Neustrelitz as a residence.
Frederick William significantly extended his dominance with Werle-Güstrow. He was followed in 1713 by his brother Karl Leopold, but he was suspended from government in 1728 by Emperor Karl VI. The third brother, Christian Ludwig II., was appointed as administrator and took over the throne in Schwerin in 1747.