Elkmont began as a Little River Lumber Company and Railroad company town in 1908. By 1918, more than 1,500 people lived here, making it Sevier County's second-largest town. The company owned nearly 80,000 acres that later became part of the national park.
A railroad once ran 18 miles from Townsend through Elkmont. The campground's straight, level main drive follows its former rail bed. The town had a commissary, church, school, hotel, tavern, machine shop and workers' houses; the Appalachian Club and Wonderland Club later leased land on opposite sides. Logging ended in the area by 1925, the rails were removed, and the town closed as operations moved to Tremont.