At the Second Wheeling Convention in June 1861, delegates discussed what Western Virginia should do now that Virginia had left the Union. There were different ideas.

Some wanted to create a brand new state immediately. Others thought creating a new state during the war was too risky. A third group, led by Waitman T. Willey, suggested a compromise: creating a "loyal" Virginia government that supported the Union. This government would act like the official government of Virginia, even though the rest of the state had seceded.

They chose Willey's compromise. This "Reorganized (sometimes called Restored) Government of Virginia" elected its own governor and lawmakers. President Lincoln's administration approved of having a loyal Virginia government but was unsure about letting it form a completely separate new state.