She then served on harbour duties at Halifax, carrying water and stores to the naval squadron stationed there.

In 1790, Rear Admiral Sir Richard Hughes received permission to buy three light-draft schooners that could sail in shoal waters where the Navy's regular vessels could not go and so assist in the suppression of smuggling.

[2] In April Alligator, under the command of Captain William Afleck, stopped at Halifax on her way to the Leeward Islands.

Alligator and Diligence sailed, with three transports carrying troops under the command of Brigadier General James Ogilvie on 7 May.

After they had sat idle for some time, the Navy sold Chatham and converted Diligent to harbour duties.