A tradition exists that while in Virginia that summer Boone called upon his former host at Detroit, then a prisoner of war, and expressed sympathy for the sad plight into which the English governor had fallen; also some indignation at the harsh treatment accorded him, and of which Hamilton bitterly complained.

The founder of Boonesborough was soon back at his station, for he served as a juryman there on the first of July. During his absence immigration into Kentucky had been greater than ever; three hundred well-laden family boats had arrived in the spring from the Pennsylvania and New York frontiers, while many caravans had come from Virginia and the Carolinas over the Wilderness Road. Attacks by Indian scalping parties had been numerous along both routes, but particularly upon the Ohio. As a reprisal for Bowman's expedition of the previous year, and intending to interrupt settlement, Colonel Byrd, of the British Army, descended in June upon Ruddle's and Martin's Stations, at the forks of the Licking, with six hundred Indians and French-Canadians, and bringing six small cannon with which to batter the Kentucky palisades. Both garrisons were compelled to surrender, and the victors returned to Detroit with a train of three hundred prisoners—men, women, and children—upon whom the savages practised cruelties of a particularly atrocious character.

This inhuman treatment of prisoners of war created wide-spread indignation upon the American border. In retaliation, George Rogers Clark at once organized an expedition to destroy Pickaway, one of the principal Shawnese towns on the Great Miami. The place was reduced to ashes and a large number of Indians killed, the Americans losing seventeen men. Clark had previously built Fort Jefferson, upon the first bluff on the eastern side of the Mississippi below the mouth of the Ohio, in order to accentuate the claim of the United States that it extended to the Mississippi on the west; but as this was upon the territory of friendly Chickasaws, the invasion aroused their ire, and it was deemed prudent temporarily to abandon the post.

Another important event of the year (November, 1780) was the division of Kentucky by the Virginia legislature into three counties—Jefferson, with its seat at Louisville, now the chief town in the Western country; Lincoln, governed from Harrodsburg; and Fayette, with Lexington as its seat. Of these, Fayette, embracing the country between the Kentucky and the Ohio, was the least populated; and, being the most northern and traversed by the Licking River, now the chief war-path of the Shawnese, was most exposed to attack. After his return Boone soon tired of Boonesborough, for in his absence the population had greatly changed by the removal or death of many of his old friends; and, moreover, game had quite deserted the neighborhood. With his family, his laden packhorses, and his dogs, he therefore moved to a new location across Kentucky River, about five miles northwest of his first settlement. Here, at the crossing of several buffalo-trails, and on the banks of Boone's Creek, he built a palisaded log house called Boone's Station. Upon the division of Kentucky this new stronghold fell within the borders of Fayette County.

In the primitive stage of frontier settlement, when the common weal demanded from every man or boy able to carry a rifle active militia service whenever called upon, the military organization was quite equal in importance to the civil. The new wilderness counties were therefore equipped with a full roll of officers, Fayette County's colonel being John Todd, while Daniel Boone was lieutenant-colonel; Floyd, Pope, Logan, and Trigg served the sister counties in like manner. The three county regiments were formed into a brigade, with Clark as brigadier-general, his headquarters being at Louisville (Fort Nelson). Each county had also a court to try civil and criminal cases, but capital offenses could only be tried at Richmond. There was likewise a surveyor for each county, Colonel Thomas Marshall serving for Fayette; Boone was his deputy for several years (1782-85).

In October, 1780, Edward Boone, then but thirty-six years of age, accompanied Daniel to Grassy Lick, in the northeast part of the present Bourbon County, to boil salt. Being attacked by a large band of Indians, Edward was killed in the first volley, and fell at the feet of his brother, who at once shot the savage whom he thought to be the slayer. Daniel then fled, stopping once to load and kill another foe. Closely pursued, he had recourse to all the arts of evasion at his command—wading streams to break the trail, swinging from tree to tree by aid of wild grape-vines, and frequently zigzagging. A hound used in the chase kept closely to him, however, and revealed his whereabouts by baying, until the hunter killed the wily beast, and finally reached his station in safety. Heading an avenging party of sixty men, Boone at once went in pursuit of the enemy, and followed them into Ohio, but the expedition returned without result.

The following April Boone went to Richmond as one of the first representatives of Fayette County in the State legislature. With the approach of Cornwallis, La Fayette, whose corps was then protecting Virginia, abandoned Richmond, and the Assembly adjourned to Charlottesville. Colonel Tarleton, at the head of a body of light horse, made a dash upon the town, hoping to capture the law-makers, and particularly Governor Jefferson, whose term was just then expiring. Jefferson and the entire Assembly had been warned, but had a narrow escape (June 4th), for while they were riding out of one end of town Tarleton was galloping in at the other. The raider succeeded in capturing three or four of the legislators, Boone among them, and after destroying a quantity of military stores took his prisoners to Cornwallis's camp. The members were paroled after a few days' detention. The Assembly fled to Staunton, thirty-five miles distant, where it resumed the session. The released members are reported to have again taken their seats, although, after his capture, Boone's name does not appear in the printed journals. Possibly the conditions of the parole did not permit him again to serve at the current session, which closed the twenty-third of June. He seems to have spent the summer in Kentucky, and late in September went up the Ohio to Pittsburg, thence journeying to the home of his boyhood in eastern Pennsylvania, where he visited friends and relatives for a month, and then returned to Richmond to resume his legislative duties.

Of all the dark years which Kentucky experienced, 1782 was the bloodiest. The British authorities at Detroit exerted their utmost endeavors to stem the rising tide of settlement and to crush the aggressive military operations of Clark and his fellow-borderers. With presents and smooth words they enlisted the cooperation of the most distant tribes, the hope being held out that success would surely follow persistent attack and a policy of "no quarter." It would be wearisome to cite all the forays made by savages during this fateful year, upon flatboats descending the Ohio, upon parties of immigrants following the Wilderness Road, upon outlying forest settlers, and in the neighborhood of fortified stations. The border annals of the time abound in details of robbery, burning, murder, captivities, and of heart-rending tortures worse than death. A few only which have won prominence in history must here suffice.

In March, some Wyandots had been operating in the neighborhood of Boonesborough and then departed for Estill's Station, fifteen miles away, near the present town of Richmond. Captain Estill and his garrison of twenty-five men were at the time absent on a scout, and thus unable to prevent the killing and scalping of a young woman and the capture of a negro slave. According to custom, the Indians retreated rapidly after this adventure, but were pursued by Estill. A stubborn fight ensued, there being now eighteen whites and twenty-five savages. Each man stood behind a tree, and through nearly two hours fought with uncommon tenacity. The Indians lost seventeen killed and two wounded, while the whites were reduced to three survivors, Estill himself being among the slain. The survivors then withdrew by mutual consent.

In May, his station having been attacked with some loss, Captain Ashton followed the retreating party of besiegers, much larger than his own squad, and had a fierce engagement with them lasting two hours. He and eleven of his comrades lost their lives, and the remainder fled in dismay. A similar tragedy occurred in August, when Captain Holden, chasing a band of scalpers, was defeated with a loss of four killed and one wounded.