After the war, Taylor resumed his banking career in Norfolk, and also worked as an attorney, particularly for railroads which were rebuilding and consolidating after the war. He quickly received a pardon, then was elected to municipal offices and to the
Virginia General Assembly as a
Conservative (in the same election as adopted a new state Constitution which forbad slavery). Taylor served as a State Senator from 1869 until 1873, vehemently opposing the
Readjuster Party. On April 30, 1870, General Lee paid his last visit to the Norfolk area, accompanied by his daughter, Agnes Lee. He arrived in
Portsmouth via railroad from
North Carolina. Colonel Taylor met and escorted him through the waiting crowds to Norfolk, then to the
Elizabeth River ferry. Lee would die less than five months later. In 1870, Taylor began his first term on the VMI Board of Visitors (serving until 1873); he would again serve on the VMI board from 1914 until his death. In 1877, Taylor became president of the Marine Bank, where he would remain for 39 years. He later also served on the board of directors of the
Norfolk and Western Railway. Near the end of the 19th century, Taylor helped develop the
Ocean View area, located along the south shore of the
Chesapeake Bay in
Norfolk County. The project had been surveyed and laid out before the American Civil War by
William Mahone, who also later became a Confederate General (serving under General Lee and then with the Readjusters whom Taylor had opposed after the war). Served by a
narrow gauge railroad from Norfolk, which operated a
steam locomotive named the "Walter H. Taylor", Ocean View blossomed as both a popular resort area and
streetcar suburb of the City of Norfolk, which annexed the area in 1923. In April 1907, while Taylor was the attorney for the new
Virginian Railway, then under construction, he met the founder, millionaire
industrialist Henry Huttleston Rogers and humorist
Mark Twain when they arrived in
Hampton Roads aboard Rogers' steam yacht
Kanawha. They were in Norfolk to attend the opening ceremonies of the
Jamestown Exposition held at
Sewell's Point. According to published newspaper reports of the day, Twain drove off with Taylor in an "infernal machine," better known in modern times as an automobile. =="Lost Cause" proponent==