Rutledge prospered in the early 19th century in part due to its situation along the Federal Road (present day US 11W), which connected New Orleans and Virginia.

[12] In 1976, a replica of Johnson's tailor shop was erected on the Grainger County Courthouse lawn.

In December 1863, Confederate General James Longstreet, who had earlier failed to wrest Knoxville from Union forces, passed through Rutledge en route to winter quarters at Russellville.

The Confederates failed to exploit the element of surprise, and the Union forces were able to hold out until reinforcements arrived.

[14] In May 1955, following efforts from the community's Lions Club, Rutledge would vote to reincorporate into a city in an overwhelming 192 in favor compared to 21 against incorporation.

Richland Creek traverses most of the valley en route to its confluence along the Cherokee Lake impoundment of the Holston River, approximately 20 miles (32 km) downstream from Rutledge.

Cherokee Lake's Ray Creek embayment is located approximately 10 miles (16 km) east of Rutledge.

According to the United States Census Bureau, the city has a total area of 4.7 square miles (12 km2), all land.