There was civil war in the Holy Roman Empire, so the emperor had to give to make friends. Henry VI, Holy Roman Emperor supported Dirk by giving him the right to levy toll on Flemish traders in Geervliet. Henry also gave the Grote Waard (Dordrecht and surroundings) to Holland at the cost of the bishopric of Utrecht. He made Holland inheritable for females. Dirk temporarily got the princely authority of the bishopric of Utrecht in 1196. This meant war with count Otto I of Guelders. Otto was defeated at the battle of the Grebbeberg. A new bishop was elected in 1197, who took over princely authority again. The Hohenstaufen Dynasty was losing the civil war, so count Dirk changed allegiance to the Welfs.
The Frisians in Oostergo and Westergo supported his brother William, who invaded Holland. William was supported by some of the West Frisians as well.
Dirk allied with Otto of Guelders in 1202 and they both attacked Brabant. Brabant claimed Holland, Utrecht and Guelders as dukes of Lotharingia. Den Bosch and Geertruidenberg were sacked during this campaign. Duke Henry I took Dirk prisoner at Heusden. Dirk had to pay a high ransom. He had to accept the duke of Brabant as overlord in southern Holland, and the bishop of Utrecht as overlord in northern Holland.
^ A.W.E. Dek Genealogie der graven van Holland, Zaltbommel : Europese Bibliotheek, 1969., but without further sources; see Dirk VII, graaf van Holland (Dutch)