[1][8] The name comes from the legend of Estatoe, pronounced 'S - ta - toe', about an Indian chief's daughter who fell in love with a warrior of a rival tribe.

In an alternative version, their love caused a bloody war between the tribes and Estatoe crafted a peace pipe with two stems in which both chiefs could smoke at once.

The two rival chiefs assembled their respective followers on the bank of the river, and smoked till peace was concluded and Estatoe married her lover.

[8] In 1899, the Linville River Railway (LRR) began rail service in the area, with a flag stop at "Old Fields".

In 1914, the East Tennessee and Western North Carolina Railroad (ET&WNC), successor of the LRR, opened the Newland Depot, which was equipped with telephone and telegraph services; burned down in 1921, but was soon rebuilt and continued operations till 1940.

[12][13] According to the United States Census Bureau, the town has a total area of 0.7 square miles (1.8 km2), all land.

The East Tennessee and Western North Carolina Railroad ("Tweetsie") passed through the town until 1940.