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Much of the watershed had been logged out by 1925, and a movement to establish a national park was underway. The Great Smoky Mountains National Park was officially established in 1934. The last logs were milled at the Townsend sawmill in 1939, after which the Little River Railroad was abandoned and eventually replaced by the highway we use today. Through all the early years of industrialized use, the Little River Watershed added to the local character and economy through its beauty and wealth of natural resources.
The Little River has played an important role in the cultural history and settlement of the entire watershed. Artifacts suggest that large Native American villages thrived along the Little River as many as 1,700 years ago. Names like Ellejoy and Tanasi remind us of their legacy. Throughout the late 1700's and 1800's, industries that used the vast natural resources of the watershed were located along the Little River and its tributaries. The Little River supported a button industry, in which button makers gathered freshwater mussel shells from the river. The Little River Railroad and Lumber Company began operation in 1901, which opened the headwaters of the watershed to heavy logging. Tanneries located along the river soon began using tree bark from lumbering operations to tan leather hides.
Perry Mills and Dam, which was built in 1906, used the river to generate hydroelectricity for the area. With electricity, the area soon became populated by employees of local industries and became a popular destination for tourists. During the early 1900's, the Kinzel Springs area became a popular tourist destination and home to many fine resorts, cabins, and inns. Sightseers were able to visit the mountains by way of the Little River Railroad on weekends and holidays.



