In 1858 the United States government and the Sioux and Yankton Indian tribes reached an agreement, ceding most of eastern South Dakota to the U.S. The agreement immediately opened this territory up for settlement by whites, resulting in the establishment of an unofficial local government not recognized by Washington.
Smutty Bear, head of the Sioux tribe, opposed the measure because he thought it would only bring further white aggression as they assumed an authority over the land. Strike-the-Ree, the Yankton chief, also felt that too many whites were settling there, but decided that opposing them was futile, and he signed the treaty. Charles Picotte, a speculator, business venturist, and translator for these meetings was rewarded by the illegitimate government with a heavy portion of land in the newly incorporated territory.