Much of Nicholson's premiership was spent trying to pass a bill which would have allowed small farmers to settle on the grazing lands appropriated by the squatters, but it encountered strong opposition from the Legislative Council, which was dominated by landowners. When the Council severely amended the bill there were riots outside Parliament House. This stiffened conservative resistance and the bill was eventually passed in a much weaker form, which the squatters easily evaded. This failure led to Nicholson's resignation in November 1860.