Etowah was founded in 1906, primarily as a location for a depot on the Louisville & Nashville Railroad (L&N) line as part of a more direct route between Atlanta and Cincinnati.

"[6] In 1902, the Louisville and Nashville Railroad announced its plan to build a more direct line from Atlanta to Cincinnati in order to avoid the rugged mountains of North Georgia and East Tennessee bypassing the Great Hiwassee Loop.

This land was purchased at $10 to $20 per acre and the L&N set about building a major rail center and the town of Etowah.

Out of what was referred to then as a wet swampland, a boomtown sprung up in 1906 with the L & N Depot serving as the hub of the new town's business and social activities.

[8] According to the United States Census Bureau, the city has a total area of 2.8 square miles (7.2 km2), all of it land.

The City Manager also maintains intergovernmental relationships with federal, state, county and other local governments.

The city and the rest of the un-incorporated Etowah area are also under the jurisdiction of the McMinn County Sheriff's Office.

[12] McMinn Central High School, between Etowah and Englewood, of the latter, serves area 9th–12th grade students.

[14] The Historic L&N Depot museum in Downtown Etowah is considered by many to be the main attraction in this small town.

The historically African-American "Parkstown" neighborhood on the south side of Etowah has also seen renewed interest from tourists in recent years.

The foundry makes parts (such as control arms, differential covers and cases, and brake calipers) for the new Ford F-series heavy duty trucks, Dodge Caravan, Hummer H2, GMC Envoy, Chrysler 300C/Dodge Charger, and the Toyota Camry.