A tropical wave interacted with an upper-level low to develop an area of deep convection near Hispaniola on July 23. A mid- to lower-level circulation developed within the system at it tracked generally north-northwestward, and based on surface and satellite observations, it is estimated the system developed into Tropical Depression Seven at 1200 UTC on July 25 about east of Daytona Beach, Florida. The system was embedded in an environment characterized by high surface pressures. Tracking through an area of cool water temperatures, as well as unfavorable upper-level winds, the depression failed to achieve winds greater than .
