The entire area, that includes land where Watsontown now exists, was harassed by Indians in the 1770’s. Several forts were built to protect white settlers. Twelve families spent the winter of 1778-1779 at the fort built by Jacob Freeland. There had been several evacuations and massacres previous to that date and settlers lived in constant fear for their lives. Fort Freeland was a large two-story log house on a half acre of ground surrounded by a twelve foot fence of strong timbers.
The fort was attacked several times that winter but the settlers were able to fight the Indians off. However, on 28 July 1779 the fort was attacked by Indians under the leadership of Hiokota, a Seneca Chief, reinforced by British Rangers led by Captain John McDonald. The fort fell as Captain Hawkins Boone and his men, from nearby Fort Boone, rushed to their aid. The Boone party was ambushed by Indians and they were all killed except two. The survivors returned to warn those left at Fort Boone who immediately evacuated down river to Northumberland. The women and children at Fort Freeland were allowed to leave along with old men. The young men were taken prisoner and sent to Fort Niagara where they remained for three years before being allowed to return home.
The land where Watsontown stands today was deeded to Lt. Daniel Hunsicked and Lt. Nicholas Housegger, on 3 February 1769, in payment for services rendered during the French and Indian War. In 1792 John Watson purchased the land from both men. In 1796 he laid out the first road, beginning at the river.