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In January of 1777, North Carolina is now considered to be a State within the United States of America, and no longer a Province of Britain. The North Carolina Constitution had been approved in December of 1776. Per that Constitution, the newly-designated Council of State began to convene in January of 1777. The Governor, with advice from the Council of State, was now the commander-in-chief of all North Carolina troops.

On February 5th, the Continental Congress authorized a new third brigade for the NC Continental Line and commissioned Francis Nash as its new Brigadier General. Each of the three NC Brigadier Generals now had three regiments of the NC Continental Line under their command.

The existing NC Provincial Troops are now considered to be State Troops for the remainder of the American Revolution. Three Independent Companies continue to guard the NC coast. Three companies of NC Light Dragoons continue, as does one company of NC Artillery. A second company of NC Artillery is authorized on January 1st.

With the election of Richard Caswell as the state's first governor, William Bryan (aka William Bryant) was commissioned as the new Brigadier General over the New Bern District Brigade of Militia.