Colonial Cemetery occupied the northernmost corner of the Market Square. Graves date as early as 1766 and continue into the 1850s. There are a variety of monument types including upright tombstones and ledger stones on the ground or raised on brick foundation as to form chest tombs. Some recognizable people who were buried here include Abraham Hodge (printer), Sarah Jones Davie (wife of William R. Davie), F.S. Marshall (prominent merchant and town commissioner) and Justina Nash, who as Justina Davis, was a fourteen year old married in 1762 to Arthur Dobbs, the seventy-two year old royal governor. After his death in 1771, Justina married Abner Nash who served as the second governor of the state.

The footprint of the c.1793 wooden-frame “house of public worship”, a free church with no denominational ties, is outlined and adjoins the cemetery. The church building was demolished in the 1900s.