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Beginning in the 1930s, a series of federal government projects provided a needed boost to Lenoir City's economy.

The Tennessee Valley Authority's construction of Fort Loudoun Dam and reservoir, which began in 1940, provided hundreds of locals with jobs, and brought a number of road improvements to the area. Highway 321 was built through Lenoir City in the 1980s primarily to provide greater access to the Great Smoky Mountains National Park, some 40 miles (64 km) down the road in Blount County.

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Mc Ghee convinced a rail car company to open a factory in Lenoir City, and a short time later a knitting mill was established.

Both establishments still employed several hundred workers in 1910.

In the early 1830s, the Lenoir Cotton Mill— one of the earliest in the South— was completed along the banks of Town Creek.

After Lenoir's death, his estate was divided up among his children.

His sons formed the William Lenoir and Brothers Company to manage the family's businesses. On June 20, 1863, a Union scouting expedition led by General William P.

When the railroad reached the Lenoir estate in 1855, a depot was constructed, and the community of Lenoir Station developed around it. Sanders arrived at Lenoir Station after having failed to destroy the railroad trestle at Loudon.

Sanford, formed the Lenoir City Company, believing the Lenoir estate would be the ideal location for such a town.

The company incorporated in April 1890 with 0,000 in stock, Lenoir City was laid out in a grid pattern with four quadrants, west of Town Creek and north of the railroad tracks.

The city's northwest quadrant would be a middle class and affluent residential area, whereas the northeast quadrant would be for the city's wage-workers.

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