During a party at Sookie's, Bill has a flashback of his days as a human, just before the Civil War,

We see what appears to be an Old West frontier town, although we are told that it is in fact a town in Louisiana, probably Bon Temps itself.

Bill, dressed in the clothes of the period, is walking down the busy street, when he meets a slave named Minus, and greets him warmly.  He asks him what is going on with the big crowd at the Bodehouse Saloon.

Just them, a rather arrogant man, named Charles Dupont, pulls up in his carriage and treats Minus like a servant.  Charles tells Bill that "Lincoln has called his soldiers", and war is about to start.

Charles seems happy about that, bragging that, given their social standing, they will both be made officers.  Bill is not pleased.

Inside the saloon, Charles mounts the stairs and delivers a rousing speech about how they must go to war to defend their rights against the North.  The crowd in the saloon eats it up.

A worried Bill stands and warns them that they are outmatched, that the North is better armed, and that war will only destroy their town.

He's right, but the crowd is in no mood to hear it. The bartender tells Bill to leave the saloon, that he has no room for "Northern sympathizers".