Anderson was educated in England and joined the Hudson’s Bay Company in 1831 as an apprentice clerk. After a year of service at Lachine, he was assigned to various HBC posts throughout the northwest, including Fort Vancouver, Fort McLoughlin, Fraser Lake, Fort George, Fort Nisqually, Fort Alexandria, and Fort Colvile.

In 1832 the HBC assigned Anderson to the Columbia fur trade district. Accompanying the Columbia express brigade, Anderson crossed the Athabasca Pass in October.

He was promoted to chief trader in 1846, and would have been made chief factor had he been willing to accept a post in New Caledonia. Between 1846 and 1847, in response to the Oregon boundary issue, Anderson led three exploring expeditions in an attempt to find a route, from the HBC post at Kamloops to the HBC post Fort Langley, which would fall entirely within British territory.

He retired from the Company in 1854, and settled with his wife Eliza Birnie, whom he married in 1837, in Cathlamet, Washington. They eventually had 13 children. In 1858 Anderson was persuaded by James Douglas [1803–1877], governor of Vancouver Island and of the crown colony of British Columbia, to accept the position of postmaster of Victoria; he later served briefly as collector of customs, and also had various business interests in Victoria. In 1876 he was appointed as both Dominion inspector of fisheries and the federal representative on the Dominion-Provincial Joint Commission on Indian Land in British Columbia. His appointment to this commission ended in 1878. Anderson was considered scholarly, and wrote several reports, articles and manuscripts about the history of the northwest coast. [1, 2, 3]