The proclamation of 1763 was issued October 7, 1763, by the London government/King George III. It strictly prohibited Americans to settle the area beyond the Appalachian. Even though the American colonists thought the proclamation was made to oppress them, its primary purpose was to work out the Indian problem fairly and prevent yet another bloody eruption between the colonists and the Natives. However, the proclamation did also have a secondary purpose; to concentrate colonial settlements on the seaboard, where they could be parts of the British mercantile system.

The proclamation made American colonists furious. Many colonists did already own land beyond the Appalachians, and why was not the land beyond the Appalachians their birthright? After some time colonists began ignoring the proclamation line, and eventually the line was moved further west. 

This event was a small beginning of rising tensions between Great Britain and the colonists.

The proclamation line                                                                                                                            King George III

sources: 

American Pageant (page 121)
http://www.ushistory.org/us/9a.asp
http://www.u-s-history.com/pages/h1209.html