The Consultation reconvened November 4 in San Felipe and chose Branch T. Archer to preside. From the beginning, there was considerable discord among the members as to the best course to follow in its dealings with the Mexican government. As a result, three factions developed. Although Stephen Austin was away with the Texas forces at the time, a pro-Austin group led by Don Carlos Barrett favored a conciliatory approach to try to gain the support of Mexican liberals. John A. Wharton and Henry Smith directed an opposing faction which favored a more militant anti-Mexican stance. The third faction sought to work toward a compromise in the positions of the other two.

While the Consultation deliberated about a compromise, its actions leaned clearly in the direction of a more autonomous role for Texas. While it stopped short of declaring independence from Mexico, the group asserted its right to do so, and voted 33 to 14 for the establishment of a Provisional Government. It drafted an Organic Law with provisions for a governor and a general council. Henry Smith was chosen as governor.