In July 1898 Barton resigned from the Upper House to stand against Reid for election to the Legislative Assembly, but narrowly lost. In September, he won a by-election for Hastings and Macleay and was immediately elected leader of the opposition, which consisted of a mixture of pro-federation and anti-federation protectionists. In January 1899 Reid gained significant concessions from the other states and he joined Barton in campaigning for the second referendum in June 1899, with Barton campaigning all over the state. It passed 107,420 votes to 82,741.