In December 1778, Virginia's Assembly declared the Transylvania claim void. In compensation, Henderson and his partners received a grant of 200,000 acres on the Ohio River below the mouth of Green River. In 1797, the surviving Transylvania Company investors and heirs sent Samuel Hopkins and Thomas Allin to the Henderson Grant land to lay out a town and mark off land for the respective investors. The location they selected for the town was the site of an existing settlement that sat high above the Ohio River called Red Banks. The new town was subsequently named Henderson.