Campbell’s protest and the ensuing Cherokee treaty reveals the connection between American federalism, land policy, and the territorial dispossession of American Indians at the heart of the expanding American empire. By analyzing the transition from territorial governance to state governance within the Tennessee River Valley, this paper will argue that historians must locate the emerging operations of American federalism in the early trans-Appalachian West and recognize the centrality of land policy and Indian affairs to that process. Most studies of federalism and divided American sovereignty have focused on their antecedent paradigms within the British Empire, their emergence from the political culture of established Eastern states, or their ideological dimensions. Few historians, however, have explored the restrictive territorial governance and how the divided sovereignty of American federalism allowed new state governments, like the state of Tennessee, to translate regional demands from the local level to the federal level and then act on those demands. Indeed, statehood in 1796 became the vehicle for early white Tennesseans to challenge federal authority. Over the next decade, Tennessee leaders and federal officials created a working relationship as the national government grew receptive to settlers’ demands for indigenous lands and the permanent dispossession of the state’s indigenous population.