Following the successful mutiny, Arthur Portsman assumed command of the group (mostly supported by the loyal marines), however he still required the backing of his step-brother William, who held the respect of the convicts. William was named deputy commander and together, they would share the responsibilities for managing the new settlement at Arthur's Cove.

Once the makeshift camps had been established, Arthur and William held a meeting with the rest of the mutineers, to identify what skills each person held and to organise the group into smaller teams to begin establishing a permanent and self-sufficient settlement at Arthur's Cove. Fortunately, many of the convicts were farming hands and labourers, including skilled masons, carpenters, blacksmiths and tailors. The ship's crew were also skilled rope-makers and carpenters, having worked on ships for most of their lives. These skills would be essential for the successful establishment of the settlement. During the meeting, the group also agreed to a set of basic foundation rules, which would govern the new settlement. Punishment for breaking such rules would result in banishment.

The farming hands were all grouped together and tasked with setting up the first farms along Deer Creek, where the soil was rich and fertile. One of the convicts, Joseph Billings, a fourth-generation farmer from Winchester, England, was given command over the farming ventures. Joseph had been convicted of stealing chickens from a neighbouring farm to feed his family, as his crop of potatos had failed during a harsh winter. The punishment for this minor crime - transportation to a penal colony on the other side of the world thousands of miles away - unlikely to ever see his family again. What had happened to Mr Billings' family back in England, nobody knew, but Joseph was not one to give up in the face of a challenge. During the last few weeks of the voyage, as food rations had been cut, Joseph had been collecting scraps of potato skin as a backup in the event the ships supply of food ran out. Thankfully, there was still a few weeks supply of food for the crew when they had reached landfall, and now those scraps would be put to good use. Along with the seeds that had been brought on the journey, Joseph set to work planting those potato skins in the new fields.

As land around the creek was cleared for farming, the logged timber was used by the carpenters to construct stronger timer dwellings, as well as lodgepole fences to keep the wild deer out of the farms. The masons collected stones from the rocky shores and constructed dry stone walls to pen the cows and sheep.

The settlement was off to a positive start, however not all had been in favour of the mutiny. Captain Gilbert and his fourteen loyal marines had been held as prisoners since the success of Arthur's mutiny several weeks earlier. The group was given two options - 1: to accept the new command of Arthur and William and assimilate into the new settlement, or 2: be banished from the settlement and test their own luck in the wilderness of this new land. Captain Gilbert, a stubborn man, could not bring himself to accept the command of the mutineers, and so, to maintain his honour, elected to leave Arthur's Cove with whomever wished to follow him. Some of the marines, who preferred the safety of staying with the larger group, accepted Arthur's offer, whilst the remainder left with Captain Gilbert. Captain Gilbert's group was provided 2 weeks worth of rations, some tools and four tents, and began to trek South along the coast in search of a new place to set up camp - far from Arthur's Cove.

As Captain Gilbert and his company of six loyal marines trekked South through the thick forests, they came across a large deep-water bay, which would have been an ideal place to settle, if not for the sight of smoke rising from the Arthur's Cove settlement in the distance - and so they pushed on. After a further week of trekking in a southward direction along the coast, the tired men reached a small freshwater stream, which emptied into a narrow shallow-water inlet. Schools of fish were seen sheltering in small tidal rock pools nearby. "Here boys - this will do" decried Captain Gilbert. The group set up camp at the mouth of the creek where they would start their new life.

And it was just in time that they had settled down, for Winter was fast approaching. The settlers at Arthur's Cove were well prepared for Winter, with ample food and firewood, and solid timber dwellings. Captain Gilbert's company were not as fortunate. The fish stock were dwindling, as they migrated North to warmer waters, and the tents barely kept out the cold. An alternative source of food was a necessity for their survival. They had no livestock, or seeds for farming, however wild deer were still seen wandering around the camp, no doubt drawn in by the freshwater stream. One of the marines, Rupert Devonshire had an idea - if some of the deer could be trapped, they could be domesticated and bred as a stable source of food for the group. A makeshift pen was constructed with old timber logs gathered from the area, and, after many failed attempts, they eventually managed to trap several deer in the pen.

The deer and dried fish would see them through this Winter, however a more stable supply of food would be required if they were to survive over the long-term.