William Tryon, governor of the Royal Colony of North Carolina, signs a contract with architect John Hawks to build Tryon Palace, a lavish Georgian style governor's mansion on the New Bern waterfront.

Tryon had seen the need for a centrally-located Government House while lieutenant governor.

After assuming office in 1765, William Tryon had worked with architect John Hawks to draw up plans for a government house similar to other British colonial structures of the time.

In December 1766, the North Carolina legislature had authorized £5,000 for the building of an "Edifice."

Tryon had told the legislature that the sum was not substantial enough for the plans he and Hawk had created; building it "in the plainest manner" would cost no less than £10,000 without including the outbuildings he envisioned.

Hawks agrees to supervise the construction for three years and goes to Philadelphia at Tryon's behest to hire workers; Tryon said native North Carolina workers will not know how to construct such a building.

Tryon is able to convince the legislature to increase taxes for the house.

This stirs resentment among some North Carolinians and helps prolong the War of the Regulation.