When the Revolutionary War began, William sided with the colonists who favored continued ties and governance by England, the Tories or Loyalists.  By 1781 he was a captain in the Tory forces of Colonel David Fanning who operated in North Carolina and Virginia in cooperation with the British regular forces.

On June 25, 1781 the North Carolina assembly had elected Thomas Burke as governor of North Carolina.  For the first two months Burke had performed the duties of office in Halifax until he received information that the Tories of Orange County were planning to rise and plunder their Whig (Patriot) neighbors.  Coupled with this was the news that David Fanning, the notorious partisan leader, was operating in the vicinity of Hillsborough, attacking and plundering fortified plantations, sometimes executing the defenders. The latest word was that Fanning planned to sack Hillsborough.  In September Burke made plans to return to Hillsborough, which was his home, to organize an extensive campaign against the loyalists. (North Carolina Continentials, p. 363)

As the Governor was making his plans, the Patriot General John Butler, with a small body of militia, was encamped on the south side of Haw River, west of Hillsborough.   Within three days of his arrival in Hillsborough, Governor Burke's heard that Fanning was operating in cooperation with the loyalist Colonel Hector McNeil and the two were planning to surprise General Butler.   The Governor sent a  messenger  to Butler with a warning and orders for him to move to a place of greater security.  Butler retreated toward Hillsborough and Fanning followed.

During the course of these movements Fanning learned that Governor Burke had returned to Hillsborough and was protected by only a small guard. The possibility of capturing the governor excited Fanning's ambition and he marched toward the town.

Fanning's forces moved all night and approached Hillsborough in the early morning darkness.   A heavy fog obscured the movements of his five hundred men as they slipped into town by different roads early on that Wednesday morning, September l2.  By the time that the townspeople were alerted to their danger, there was no opportunity to organize resistance. The majority of the men chose to remain in their homes to defend their families. The steady fire of the invaders kept them separated and from going to one another's aid.  (The N.C. Continentals, p. 364)

The Tories gradually converged on the eastern part of the town where Burke's home was located. The governor put up a vigorous defense, aided by his aide de camp, Captain Reid, his secretary, John Huske, and an orderly sergeant of the Continental Line. They were soon overpowered, but Burke refused to surrender his sword because of the hostile posture of the Tories.  Only after a British officer  accompanying the loyalists assured him that no harm would come to him did the governor give up his weapon.

General Bulter learned that Fanning and his prisoners  were heading South out of Hillsborough and crossing the river and that he planned to go down on the west side  to reach the Tory region to the East.   Butler decided to get there before them and occupy a favorable position to attack.. The ground at John Alston's mill, a little above or below what is now Lindley's mill, appeared the most suitable and that is where they chose to make their stand.  The number engaged in the subsequent battles of Moore's and Cane Creeks is not known exactly,  but according to the best traditional accounts,  the Tories had about six hundred and the Whigs about three hundred.
 
As the Tories were crossing the creek, and advancing through a hollow or strip of low ground along  the road, the Whigs opened fire from the brow of the hill, on the south side of Cane Creek with tremendous effect.  The Tories were taken  by surprise and quite a number were killed and wounded.   Before the firing began, Captain McLean halted his men and prisoners in the rear and they all sat down to rest.  On hearing the first fire of the Whigs, Governor Burke, and most of the prisoners, jumped to their feet and looked about; but the Captain told them to be quiet; for if they attempted to escape they should every one be shot down; and they had to obey. (Archibald McMahan was one of the prisoners being held by Captain McLean)

Tory Colonel McNeill, on seeing so many of his men cut down by the first fire, ordered a retreat, but then changed his mind and attempted to proceed.  At the next volley of the Whigs, five or six balls entered the Colonel's body and he fell dead on the spot, So did several others, and many more were wounded.

Amid all this success on the part of the Whigs, and all this disaster and confusion among the Tories, Colonel Fanning decided  to cross the stream at another place, and then, after  making a little circle, he attacked the Whigs in the rear.  The Whigs were taken by surprise, ".....and  thrown into momentary confusion, but quickly recovered; and, for a short time, the contest was fierce and bloody. Nearly every Whig who was killed during the action fell at this time, and in the course of ten or twelve minutes. The charge of Fanning was furious until his arm was broken by a rifle or musket ball , and he was carried off the field.  Viewing their situation as now desperate, considering the disparity of numbers,  General Butler ordered a retreat, and commenced it himself. The men, in obedience to orders, were following his example, when Col. Robert Mebane got before them, and by arguments and remonstrances. so far inspired them with his own heroic spirit that enough of them returned to renew the battle and keep the ground. It seems to have been at last a drawn battle; for neither party claimed the victory, and neither appears to have kept the ground for any length of time.  The Tories were glad to get away with their prisoners, and the Whigs became willing to let them go." (The Old North State, p. 51) William Deaton was killed at the battle of Lindley's Mill (Sometimes called the Battle of Cane Creek.

Neither Whigs nor Tories really kept the ground and attended to the burying of the dead, but the  next morning the neighbors met there and buried thirty-two in one pit. Besides these, according to the concurrent tradition of both parties, many of the dead were carried away by their friends and buried in the neighborhood. Of  the wounded, some got away themselves and others were carried away by their friends and acquaintances.  A number are known to have died of their wounds soon after. Between the foot of the hill and the creek the dead and dying were strewed about in every direction, and some of them were lying in the water. (Old North State, p. 53)