Continued unrest between Protestants and Catholics during the latter half of the eighteenth century led to the Catholic Defenders assembling on a hill in Loughgall, in an area known as the Diamond. Protestant forces took command of an opposing hill, with the homestead of Dan Winter and his family sandwiched between. On 21st September 1795, the two sides engaged in battle, forcing the Defenders to secede their position. The Protestants assembled in Dan Winter's cottage, where solemn oaths were taken and the Orange Order formed as a Protestant association for the defence of the Protestant religion and Protestant homes.

The Orange Order grew, with various lodges formed throughout the county. In July 1796, they petitioned Sir Arthur Acheson for permission to parade through his Demesne at Gosford. Lord Gosford had been appointed Governor of County Armagh in 1791 and was never to join the Order, but he did allow the march to pass through his land. He gave the following account of the first Twelfth of July parade.

"My answer of course was that if they were sober and orderly I could have no objection to comply with their request. They accordingly came here...marching in regular file by two and two with orange cockades, unarmed, and by companies which were distinguished by numbers upon their flags...They posted two men at each side of my gates with drawn swords to prevent any person coming in but their own body....They were perfectly quiet and sober...each company as they passed me by saluted me by lowering their flags".