At the Constitutional Convention in 1787, the writers of the American Constitution debated a lot over the issue of a strong central government and protecting the rights of the individual states. Because of their experience with King George of England, many delegates fought against a strong central government. In the end, the writers of the Constitution tried to please both arguments, but the debate continued.
The Federalist Party supported a strong central government and was made up of mostly Northern industrialists. The Southern plantation owners mostly supported the Democratic-Republicans who stood for states' rights. The Democratic-Republicans thought that a state had the right to overrule a Federal law if they thought it did agree with the state constitution.
When the number of slaves grew especially after Eli Whitney invented the cotton gin, the issue of states' rights became even more important. The Northern states argued that the Federal government had declared slavery illegal and the Southern states argued that they were independent of the Federal government and could make their own laws.
Finally, the Southern states exercised their states' rights when they seceded from the Union after President Lincoln, a Northerner, took office.