In 1771, Silas Engart received a land grant of 200 acres that included the location of the future town.

The location of the town was such that it would emerge as an important commercial center for people and goods traveling through Big Moccasin Gap and the North Fork of the Holston River.

[6] In 1817, the town was renamed Estillville in honor of Benjamin Estill, a local judge instrumental in the formation of the new county.

As a result of the county seat's location near Big Moccasin Gap and the North Fork of the Holston River, the town grew into a commercial center for people passing through on their way westward, for farmers hoping to sell goods, and businessmen in town for legal affairs.

A regular wagon train and coach line service conveying people, mail, and commercial goods between Bedford and Estilville.

Iron ore from the Snowflake and Nickelsville areas as well as glass sand from the south of Clinch Mountain were manufactured and shipped from Gate City.

In addition, the town had a thriving manufacturing center in the area of Water Street where wood pumps, staves, sleds, and harnesses were built.

As industry in Kingsport, Tennessee (6 miles to the south) attracted Gate City residents, several local businesses and small manufacturing companies shut down.

[7] Pilot Flying J, the largest network of service station/travel centers in North America operating in 44 states and 6 Canadian provinces, and headquartered in Knoxville, TN, was started in Gate City in 1958.

The Virginia Department of Transportation (VDOT) plans for a large portion of the mountain at Moccasin Gap to be shorn away.