The establishment of Indian Stream as an independent nation was, essentially, the result of the ambiguous boundary between the United States and British Lower Canada as defined in the 1783 Treaty of Paris.

As a result, the area in and around the three tributaries that fed into the head of the Connecticut River was not definitively under the jurisdiction of either the United States or Lower Canada (which was formed in 1791).

The double taxation angered the population, and the Republic was formed to put an end to the issue until such time as the United States and Great Britain could reach a settlement on the boundary line.

The Constitution of Indian Stream states in "Part Second – Form of Government":[5] The people inhabiting the Territory formerly called Indian Stream Territory do hereby solemnly and mutually agree with each other to form themselves into a body politic by the name of Indian Stream and in that capacity to exercise all the powers of a free, sovereign and independent state, so far as it relates to our own internal Government till such time as we can ascertain to what government we properly belong.The independence declaration did not cause the sheriff of Coos County to cease his involvement in affairs, with later events leading to an impending invasion by New Hampshire.

In reporting the incident to the British magistrate, Tyler falsely stated under oath that the location of his arrest was Drayton, Lower Canada.

Several hours later, there was a commotion in the road nearby from a posse of armed Streamers, emboldened by liquor, bent on making an impression.

The invading posse shot the deputy through the thigh and then captured the hobbled magistrate with a blow of a saber to his scalp during a struggle.

[2] In the aftermath, a detachment of fifty New Hampshire militia, including troops and officers, occupied the territory from mid-November until February 18, 1836.

The 1845 Lewis Robinson "Map of New Hampshire based on the latest authorities" shows the boundary as being north of the town of Clarksville but just south of modern-day Pittsburg.