Saunders remained allied with the McSween faction, and became an original member of the "Regulators", formed to counter the corrupt sheriff's office of William J. Brady, allied with Dolan-Murphy.
On April 4, 1878, the Gunfight of Blazer's Mills took place, during which Buckshot Roberts was killed, along with Regulator leader Brewer, in addition to Billy the Kid, Bowdre, George Coe, Middleton and Scurlock being wounded.