The establishment of the Southwest Territory followed a series of efforts by North Carolina's trans-Appalachian residents to form a separate political entity, initially with the Watauga Association, and later with the failed State of Franklin. North Carolina ceded these lands in April 1790 as payment of obligations owed to the federal government. The territory's residents welcomed the cession, believing the federal government would provide better protection from Indian hostilities. The federal government paid relatively little attention to the territory, however, increasing its residents' desire for full statehood.