[5] Collinwood was established in 1913 as a stop on the Tennessee Western Railroad, a rail line constructed to serve the area iron industry.

A wood alcohol (methanol) distillation plant and blast furnace were constructed in the years following the war, but as demand for these products fell, the economy collapsed and the city began to decline.

[6] The Collinwood Railroad Station, built in 1916, still stands near the center of the city, and is listed on the National Register of Historic Places.

The station, which mostly follows design patterns typical of L&N depots of the period, is the last major remnant of the area's railroad history.

[8] The city is situated on a relatively broad plain surrounded by low hills and hollows.

State Route 203 intersects SR 13 at the southern tip of Collinwood, connecting the city with Savannah to the west.

According to the United States Census Bureau, the city has a total area of 2.8 square miles (7.3 km2), all of it land.