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Later in its first session, during May of 1777, the new North Carolina State's General Assembly created three new counties - Burke, Camden, and Caswell. The existing 2nd Pasquotank County Regiment became the new Camden County Regiment. The Northern Orange County Regiment became the Caswell County Regiment. The 2nd Rowan County Regiment became the Burke County Regiment. There are now 39 counties and 39 regiments of Militia in the new state.

During May of 1777, John Butler replaced Thomas Person (who resigned) as the Brigadier General over the Hillsborough District Brigade of Militia. Brigadier General Edward Vail, Sr. died on June 5th and his command remained vacant until December of 1777.

On July 10th, the Continental Congress approved placing the two companies of NC Artillery on the NC Continental Line. All NC Continental regiments were in the northern theater except for a small part of the 9th NC Regiment and most of the 10th NC Regiment, which were still filling their ranks at home.

The only remaining NC State Troops were the three Independent Companies guarding the coast.