You were correct the first time. Camp of Instruction No. 1 (Camp Watts) existed at Notasulga in Macon County.

"Assigned to the camp of instruction at Notasulga, Alabama, Major William G. Swanson was appointed on August 4, 1862. He reported that five companies of conscripts had been organized by August 22, 1862. Within a month the number of companies had been doubled, each with a minimum strength of about thirty enlisted men. These came from all parts of southern Alabama. Some of Swanson’s drill masters had served with him the 3rd Alabama Infantry Regiment, while others were acquaintances from Macon County, Alabama."

Also, Lee County was created out of adjoining counties after the war ended. I recently listed all the temporary camps in Macon County, including the one at Loachapoka, in a post on Macon County in the Confederacy.