Early in 1772 Virginia made a treaty with the Cherokee Nation, which established as the boundary between them a line running west from White Top Mountain in latitude 36 degrees 30'.[30] Immediately afterwards the agent[31] of the British Government among the Cherokees ordered the Watauga settlers to instantly leave their lands.

They defied him, and refused to move: but feeling the insecurity of their tenure they deputed two commissioners, of whom Robertson was one, to make a treaty with the Cherokees.

This was successfully accomplished, the Indians leasing to the associated settlers all the lands on the Watauga waters for the space of eight years, in consideration of about six thousand dollars' worth of blankets, paint, muskets, and the like.[32] The amount advanced was reimbursed to the men advancing it by the sale of the lands in small parcels to new settlers,[33] for the time of the lease.[34] After the lease was signed, a day was appointed on which to hold a great race, as well as wrestling-matches and other sports, at Watauga.

Not only many whites from the various settlements, but also a number of Indians, came to see or take part in the sports; and all went well until the evening, when some lawless men from Wolf Hills, who had been lurking in the woods round about,[35] killed an Indian, whereat his fellows left the spot in great anger.
The settlers now saw themselves threatened with a bloody and vindictive Indian war, and were plunged in terror and despair; yet they were rescued by the address and daring of Robertson.

Leaving the others to build a formidable palisaded fort, under the leadership of Sevier, Robertson set off alone through the woods and followed the great war trace down to the Cherokee towns.