While iron ore was mined in southwestern Lawrence County as early as the 1830s, the industry really began to thrive in 1886, when a branch railroad line to the area was completed.

[8] Iron City is situated in the Shoal Creek Valley, north of the Tennessee-Alabama state line.

Iron City is surrounded by rugged hills on the north, south, and west, and by the creek on the east.

State Route 242, which intersects SR 227 in Iron City, connects the community with Westpoint and Lawrenceburg to the northeast.

According to the United States Census Bureau, the CDP has a total area of 0.9 square miles (2.4 km2), all land.

[9] As of August 1, 1987, the town no longer had police officers of its own, law enforcement services defaulting to the county sheriff.

[8] Iron City is the hometown of 1960s country music star Melba Montgomery.