Lost Cove lies along the Nolichucky River in the Poplar Gorge between Tennessee and North Carolina. For a long time, it was contested territory, and its secluded location lured moonshiners in the early 1900s. When one was brought to jail on accusations of illegal brewing, the judge dismissed the case as outside of his jurisdiction. This ruling encouraged more moonshiners to pursue their tawdry activities in this gorge. With the lumber industry, the railroad came in. A proper wagon road was built in 1912, and the town prospered. Lost Cove produced a sizable logging operation and had accouterments of an operating town, such a school. The population, at its height, was probably around 100 people.

As the timber ran out, the railroad halted passenger trips to focus on coal, and the town slowly deteriorated. The state of Tennessee considered building a road to the town, but legislation never passed. Lost Cove Settlement's last family left in 1957.

Now, several intact houses remain, tucked innocuously into the mountains on the Tennessee--North Carolina border. The town cemetery can also be seen, with some graves over a hundred years old.