After an agreement had been reached on the line of demarcation, Cheshire offered the following resolutions: (1) that the convention of 1883 ratify the work of the convention of 1882 relative to a division of the Diocese; (2) that the Bishop of the Diocese and the General Convention of the church be requested to give their consent to this procedure; and (3) that all the securities and properties of the church in North Carolina be equally divided between the two dioceses, as should be agreed upon by a committee representing both. Cheshire's resolutions were voted upon separately, and were all adopted. Following their approval the convention received a letter from Bishop Lyman announcing his consent to the formation of a new diocese. Thus was decided an important, and vexing, problem of the church in North Carolina.

The convention of 1883 was the first in which Cheshire had taken a significant part, but from that time forward his influence and counsel became increasingly important. He was made chairman of the committee on the division of diocesan properties. His committee had a difficult task in dividing the permanent funds of the church to the satisfaction of both dioceses. The problem caused a few very bitter discussions in several succeeding conventions. Cheshire usually led the discussions, often taking the side of the new diocese against Bishop Lyman and a majority in the convention. More often than not he won his point, since his opponents rarely took the pains to make themselves fully acquainted with the facts. Cheshire was sometimes accused of being discourteous in his manner towards the Bishop when they disagreed. It can be fairly said, however, that he was never intentionally so. In a letter to the Bishop he remarked that he often spoke excitedly and impetuously upon any subject about which he felt very strongly, and that this characteristic was sometimes interpreted as discourtesy.[20] Cheshire had the highest respect for Bishop Lyman and admired him both as a bishop and a man. Nevertheless, it was almost inevitable that two such decided and forthright characters as Lyman and Cheshire should have pronounced disagreements.

One of Cheshire's most valuable contributions to the diocesan conventions was his services on the Committee on Canons. He was a member of this committee from 1884 through 1893, with the exception of 1887-88, serving as its chairman for several years. He made himself thoroughly acquainted with the canons of the church, and while serving on the committee, he did most of its work. During these years debates on the canons occupied much of the time of the annual conventions. Long after becoming bishop, Cheshire remarked that he was happy to observe that this was no longer true, and that "We have come to be interested in more important business." He did not mean to belittle the value of canonical law, but rather to emphasize the importance of other work.

In 1887 Cheshire made a revision of the canons, expecting the convention of that year to call for a revisal. He also carefully annotated the canons and the articles of the diocesan constitution. The convention of 1887 did call for a revision to be made and be presented to it the next year. However, Cheshire was "surprised and disappointed" when the Bishop did not reappoint him to the Committee on Canons. Hearing of the work Cheshire had already done on the canons, Dr. Kemp P. Battle suggested that he should present to the next convention his revision as a substitute for the one to be proposed by the committee. Cheshire decided to follow this suggestion. When the committee presented its report to the convention of 1888, he rose to say that he had prepared a revision of the canons the year before and had been advised by some of his friends to offer it as a substitute. Several requests were made from the floor that he should explain his work. Following his explanation a motion was made that his revisal be adopted in place of that of the Committee on Canons. The motion was carried by a large majority, and after making several minor changes, the convention adopted Cheshire's revision. Its action was a signal tribute to the high character of Cheshire's work.

From time to time Cheshire served on other regular and special committees. He was a member of the Executive Missionary Committee from 1885 to 1891, and a member of the Board of Managers of the Thompson Orphanage from 1886 through 1893. In all his activities he manifested a zealous interest in the affairs of the Diocese. In consequence of his work in the diocesan conventions and his productive ministry in Charlotte, he came to be recognized as one of the outstanding clergymen of the state.

Cheshire's first personal contact with the work of the church outside of North Carolina was with the University of the South at Sewanee, Tennessee. Feeling that the churchmen of his Diocese displayed an unwarrantable lack of interest in the welfare of the University of the South, he resolved to bring to their attention the needs and opportunities of the institution. In 1885 he made an appeal for support of the school in the columns of the Church Messenger. He wrote personal letters to prominent churchmen, and made addresses on behalf of the University in as many parishes as he could conveniently reach. His voluntary efforts met with some success. Perceiving Cheshire's active interest in the school, Dr. Jarvis Buxton, clerical trustee for the University from the Diocese of North Carolina, resigned this position at the convention of 1885. Dr. Buxton then nominated Cheshire to succeed him, and the convention unanimously confirmed his nomination. From 1887 until he was elected bishop he attended every meeting of the trustees. During this period Cheshire formed many lasting friendships with the trustees and professors he met at Sewanee. These associations gave him a better understanding of the church's work outside of his Diocese.

The diocesan convention further recognized Cheshire's ability by electing him one of the clerical deputies to the Triennial General Convention of 1886. He was re-elected a deputy to the succeeding conventions of 1889 and 1892. As far as the journals reveal, he did not take an active part in any of these meetings. It was characteristic of him to have little to say in a body of which he was a new member until he had become thoroughly acquainted with its personnel and procedure. At the General Convention of 1889 he was made a member of the Missionary Council and was re-elected to the Council in 1892. Attendance upon these conventions further broadened his knowledge of the work of the national church and brought him into contact with many of its prominent figures.

In consequence of his energetic parochial work and his active participation in diocesan affairs, Cheshire received, during his rectorate at St. Peter's, several calls to other parishes. In September, 1888, the vestry of Calvary Church, Tarboro, asked him to become their rector to succeed his father, who wished to retire. Cheshire refused the call. It is to be supposed that he preferred the larger opportunities offered in Charlotte, but his personal papers do not reveal why he rejected the invitation. Writing to him concerning his refusal, Bishop Lyman stated that he was pleased to learn that Cheshire was to remain in Charlotte, and that he recognized "how great a calamity it would have been to the interest of the Church, in your own, and in the adjacent counties, had you decided to resign your present position. I am sure, too, that your determination to remain will greatly strengthen the hearts of those around you, and greatly increase your powers of usefulness."[21] This commendation of his work by Bishop Lyman, who was not inclined to give excessive praise, must have been encouraging to Cheshire. Three years later he received a call from the vestry of St. Paul's Church, Macon, Georgia. They offered him a rectory and a salary of sixteen hundred dollars a year, but he also declined this call.

The most complimentary consideration Cheshire received, prior to 1893, was in the summer of 1891. At that time Rev. Henry Lucas, rector of St. Mark's Church, Brunswick, Georgia, in behalf of himself and several other clergymen, wrote Cheshire to ask if he had any objection to his name being used as a nominee for bishop of Georgia. Lucas stated that the diocesan convention of Georgia was to meet on July 1, in Macon, to elect a bishop. Cheshire replied that if he were elected by the convention he would be "on the whole unwilling to accept." The Georgia convention met and elected a bishop, but Cheshire's name was not placed in nomination because the delegates did not wish to risk a refusal. Rev. A. W. Dodge, a member of the convention, wrote Cheshire: "I think we could have elected you without any great difficulty if you had been willing to serve us."[22] In none of his writings examined does Cheshire give an explanation of his unwillingness to become bishop of Georgia. His love for North Carolina and its people and a sincere conviction that he should devote his life to the work of the church in this state is probably the best explanation of his decision.

During these years in which Cheshire was assuming a greater share of diocesan work, his parochial and missionary duties in and outside of Charlotte were not neglected. The only serious criticism of his services which was brought to his attention by his parishioners was that the missions in Iredell and Mecklenburg counties demanded too much of his time. Cheshire, however, maintained that in serving the rural missions he was at the same time building up St. Peter's, since the missions would eventually furnish many new members to the town parish. In spite of this criticism, he continued his missionary and institutional work. In 1885 and 1886 he gave wholehearted assistance to Rev. Edwin A. Osborne in establishing the Thompson Orphanage in Charlotte as a diocesan institution. The last parochial enterprise of St. Peter's Church in which he participated was the founding of the Good Samaritan Hospital for Negroes. The movement for the hospital was initiated by Mrs. John Wilkes, with whom Cheshire co-operated in every way. He devoted much time to raising the money for the purchase of a lot. In 1888 he laid the cornerstone of the hospital and three years later officiated at its formal opening. The Good Samaritan was the first hospital for Negroes to be established in North Carolina.