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In 1860, the Sewanee Mining Company reorganized as the Tennessee Coal, Iron & Railroad Company. The company created Tracy City as a company town. Much of Tracy City’s historic downtown traces its origin to the period of the company’s most rapid expansion, between 1875 and 1895. At one point, Tracy City was one of the 10 largest cities in Tennessee, including an impressive school, the Shook School, known locally as “the college.” Other tourism assets in Tracy City include the historic buildings and businesses in the downtown area, including the 115-year-old Dutch Maid Bakery, the historic Marugg Company building and Henry Flury & Sons General Store. Three miles of the Mountain Goat Trail, a historic rail-trail that is growing the span the entirety of Tennessee's South Cumberland region, can be accessed at Tracy City Elementary School and the Tracy City Roundhouse Park.
Tracy City is surrounded by the natural attractions found in South Cumberland State Park including Foster Falls, Denny Cove, and the 13-mile Fiery Gizzard Trail, one of the 25 best hiking trails in the United States.