With a population of less than one thousand in just six square miles, the town of Highlands is more densely populated by forestry and water sources than people. The town’s geography is defined by these water sources; small creeks and streams pervade the landscape, though the two main rivers flowing through the county are more influential. The Cullasja River originates in Highlands and is a tributary running into The Little Tennessee River, which connects Highlands to its neighboring town, Franklin. The Little Tennessee River flows from Lake Sequoyah, a manmade lake fed by Mirror Lake and the surrounding creeks and streams. This river system compliments the waterfalls in the area, including: Bridal Veil Falls, Cullasaja Falls, Glen Falls, Dry Falls, and Quarry Falls.
The town’s history dates back to 1875 when two Kansan developers, according to legend, drew a line on a map from New York to New Orleans and another from Chicago to Savannah. They predicted those routes would become major trade routes and identified the intersection, modern day Highlands, as a great population center. A health and summer resort was built at the highest crest of the plateau, around 4,000 feet above sea level, and attracted visitors for years following. In the 1920s, the Cullasja River was dammed, which created Lake Sequoyah and, consequently, another incentive for people to visit the small mountainous town. The town remained unchanged until the 1970s, at which point multi-family homes and shopping centers sprang up. Before the development altered the town’s landscape drastically, land use plans and zoning laws were put in place to protect Highlands’ natural resources.