Fort McPherson , Nebraska Fort McPherson was originally called Cantonment McKean , and was popularly known as Fort Cottonwood . The Fort was an Indian Wars - era U . S . Army installation in Nebraska Territory located near the site of present - day North Platte , Nebraska . Location . It was located on the banks of the North Platte River , at the mouth of Cottonwood Canyon , a strategic location near the junction of South and North Platte Rivers . Cottonwood Springs , a natural spring in an abandoned bed of the river , was the only spring for many miles along the river and a favored spot used by the plains Indians . We started early on October 11th , and passed Gilmans ' ranch , which was built of cedar , and , going fifteen miles farther , camped at a spring called Cottonwood Springs . A man by the name of Charles MacDonald had built a cedar ranch at the mouth of Cottonwood Canyon , which canyon came down to the river near Cottonwood Springs . Cottonwood Springs was merely a seep in a gully which had been an old bed of the river , and which had curved up towards Cottonwood Canyon . The water - bed of the river being largely composed of gravel , the water came down in the underflow , and seeped out at a place down in the bank where there had grown a large cottonwood tree . This spring had been dug out , and was the only spring as far as known along the Platte for two hundred miles . It was at the mouth of Cottonwood Canyon that we were to build our military post . The place was a great crossing for the Indians going north and south . The valley here was several miles wide . There was a large island in the river of several thousand acres , upon which grew the finest grass to be found in the country , and there were some scrubby willows and cottonwoods ; so that the Indians coming from the north found it a good stopping - place to feed their ponies either in summer or winter , because in the winter the ponies could eat the cottonwood brush . In addition to this , Cottonwood Canyon gave a fine passage to the south . A road went up on the floor of the canyon , between the trees , until it rose onto the tableland twenty miles south . The canyon furnished fuel and protection . It was for the purpose of breaking up this Indian run - way that we were ordered to build a post at the mouth of the canyon . History . The decision to build the fort was following the Dakota War of 1862 . It was an outpost to protect travelers along the Oregon and California Trails , between Fort Kearny and Colorado and to keep the peace with the local Native Americans . The fort was built by troops of the 7th Regiment Iowa Volunteer Cavalry using cedar logs cut in Cottonwood Canyon . It was completed in October 1863 . Originally named Cantonment McKean , on February 26 , 1866 it was renamed Fort McPherson in the honor of Major General James B . McPherson . However , it was always popularly known as Fort Cottonwood . Numerous expeditions were launched from Fort McPherson during the Indian Wars . The most important was the expedition of General Eugene Asa Carr which finished with the defeat of the Cheyenne Indians at the Battle of Summit Springs . The fort was abandoned in 1880 . A cemetery was created along with the fort . In 1873 , were set aside for Fort McPherson National Cemetery , and the remains interred in the original post cemetery were moved to it .