The area was originally inhabited by Catawba and Cherokee peoples and was later settled between around 1760. The city was chartered in 1843 and named after Colonel Isaac Shelby, a hero of the battle of Kings Mountain (1780) during the American Revolution. Shelby was agricultural until the railways in the 1870s stimulated Shelby's development. Textiles later became its chief industry during the 1920s when production of cotton in Cleveland County rose from 8,000 to 80,000 bales a year. Cotton production peaked in 1948 with Cleveland County producing 83,549 bales, making it North Carolina's premier cotton county. In the 1930s, Shelby was known as “the leading shopping center between Charlotte and Asheville”  People from surrounding counties came to Shelby to shop, since there were numerous types of local and chain stores. By 1947, Shelby was a true thriving town with the mills paying among the highest wages in the South. In the 1950s, droughts, insect infestations, and government acreage controls resulted in the decline of cotton as Cleveland County's primary crop.