In the election of 1892 Nāwahī changed party alliance and ran as a candidate for the newly created National Liberal Party, defeating Reform candidate Robert Rycroft for the seat of South Hilo in the House of Representatives. The Liberal Party advocated for a constitutional convention to draft a replacement to the unpopular Bayonet Constitution and increased Native Hawaiian participation in the government. The party was divided between radicals and more conciliatory groups. Nāwahī and William Pūnohu White (the representative of Lahaina) soon became the leaders of the factions of the Liberals loyal to the queen against the more radical members including John E. Bush and Robert William Wilcox, who were advocating for drastic changes such as increased power for the people and a republican form of government. Nāwahī was initially elected vice-president under Bush and later became the president of the Liberal Party.