Maryland's charter stated that the western boundary should be a meridian (north-south) line from the source of the Potomac river. The true source of the river would come into question, and while it was not the cause of any major disputes in Maryland during the colonial era, events that took place in 1736 would determine what was to be accepted as the source.

In 1688, King James II granted to Lord Thomas Culpepper of Virginia, all of the land between the Potomac and Rappahannock Rivers. A dispute arose between Lord Fairfax and Virginia, and both sides appointed comissioners to settle the matter in 1736, and they embarked along the Potomac to locate its source. The comissioners approached a fork in the river about 8 miles southeast of present-day Cumberland, where the two feeding branches were roughly the same size. They agreed that the northerly one was the main river, and followed it to the source.

The 'Fairfax line' was drawn out between the source of the Rapahannock River and the newly discovered source of the Potomac in 1746. A stone marker was placed at the source of the Potomac. It could have been argued that the south branch of the river was the main branch. It is actually longer than the north branch, and its source is located farther fromteh mouth of the Potomac. Had the commissioners in 1736 chosen the south branch to be the main one, Maryland would have gained an immense amount of territory. When Maryland's settlement moved westward, the north branch of the Potomac river had been the accepted main stream, and consequently the boundary between Maryland and Virginia. Maryland would actually take this matter and other relating to the source of the Potomac to court in the early 20th century, but the stone at the end of the Fairfax line would ultimately be used to determine the western boundary.

From the beginning, Maryland was faced with disputes over land. After the apparent victory over control of Smith Island in the 1630s, Maryland's outlook for territorial claims looked promising. After 88 years of dispute after 1681, Maryland would lose about 4,300 square miles total to Pennsylvania. (including Delaware) The incorrectly drawn line from Watkins point on the lower eastern shore gave some of Maryland's land to Virginia. Some of the disputes that began in the colonial era , that were thought to be settled, still create controversy today.