Soon after Colton's arrival in Monterey, Commodore Robert F. Stockton appointed him Alcalde of Monterey. This role was a combination of judge, sheriff, and governor over much of Northern California. He served with wisdom and sound judgment in dealing with lawbreakers, built Colton Hall, and fined every gambler $20 to help cover the costs of building California’s first schoolhouse. He won wide acclaim as a fair judge and impaneled the first jury in California to assist in making decisions.
During this period, he also met Robert B. Semple and decided to launch the first newspaper published in California, The Californian. On August 15, 1846, only a month after the American flag was raised at Monterey, The Californian carried the news of the declaration of war with Mexico.
Colton's book, Three Years in California, about his experiences was published in 1850 after his return to the east.
He died in 1851 and was buried in Laurel Hill Cemetery in Philadelphia.
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