After the U.S. Senate approved the covenant, the people of the Northern Marianas elected 39 delegates to draft a constitution for the Commonwealth at a convention in Saipan starting on October 18, 1976. While the delegates were not elected by party affiliation, most were from the Territorial party, with Lorenzo I. DeLeon Guerrero serving as president. The convention lasted 50 days and faced contentious issues like mayoral authority and representation for Rota and Tinian, leading to a walkout by some delegates who refused to sign the constitution on December 4, 1976. In the first gubernatorial election, Jose C. Tenorio and Carlos S. Camacho emerged as the respective candidates for the Territorial and Democratic parties, with Camacho-Ada winning by a narrow margin. The Territorial party, however, gained control of the legislature with Guerrero and Rasa leading the Senate and House, respectively. 

Inaugurated on January 9, 1978, Governor Camacho's administration faced challenges, particularly with Rota and Tinian mayors over department head appointments and capital-improvement funds, a dispute ultimately resolved in favor of the islands. A casino-gambling bill passed but was repealed by voters in the 1979 election. In 1982, a peaceful transition of power occurred when the Territorial party's Pedro P. Tenorio and Pedro A. Tenorio were elected. 

Changes in federal laws spurred foreign investment and the growth of the tourism and garment industries, leading to an economic boom in Saipan.