Dillsboro was founded in the 1880s as a major hub for the railway and lumber industries. The town was named after James Dills, a prominent local businessman and civic leader. The town grew rapidly and became a center of commerce, with a thriving railway station, sawmills, and other businesses.
In the early 1900s, the town suffered a major setback when a flood destroyed much of its infrastructure and damaged the railway. However, Dillsboro quickly rebounded, and by the mid-1900s, it had become a popular tourist destination, attracting visitors with its picturesque scenery and Victorian architecture.
In the latter half of the 20th century, Dillsboro transformed into a quiet, peaceful town, as the railway and lumber industries declined. Today, Dillsboro is a popular destination for visitors looking to escape the hustle and bustle of city life and enjoy the natural beauty of the surrounding mountains.