Alexander Chatham opened a small woolen mill in 1877 that grew to become Elkin's largest industry for many decades, The Chatham Manufacturing Company. Along with other mills in the area it has dwindled. The Northwestern North Carolina Railroad arrived in 1890; the town was ready to take the opportunities the railroad brought for commercial and industrial expansion. Its strategic location near the Yadkin River and the Big Elkin Creek and as a stop on the railroad caused prosperity that produced brick stores, many industries, and fine houses.