The structure was constructed in 1788 or around 1791 at Grassy Valley, an early European settlement in the Appalachian Ridge-and-Valley region of East Tennessee.
The station was intended to provide supplies for westward-bound migrants and to protect them from hostile Cherokee Indians during the years of the Cherokee–American wars.
The existence of a supply depot attracted European settlers to the area and contributed to the development of a settlement around the fortification.
[1] The present day community of Fountain City began to develop around the supply depot Fort Adair shortly after its completion.
[5] Fort Adair was located in the Appalachian Ridge-and-Valley region of East Tennessee, which is characterized by long, narrow ridges in a northeast-southwest direction.