In the late 1880s, the Knoxville Southern Railroad (not to be confused with the larger Southern Railway) began building a rail line connecting Knoxville with Blue Ridge, Georgia. Developers bought up the land surrounding this railroad's intersection with Morganton Road with plans to develop a town, initially known as "Allegheny" after the resort hotel to the south. Lots were sold, and a depot was constructed in 1891. Thompson moved his post office, still known as "Greenback," to the Swanay Brothers Store in the new town. The name "Greenback" gradually came to be favored over "Allegheny," and the railroad changed the name of the station to "Greenback" in 1897.