Hardy settlers first arrived in the village around 1843, and in thanksgiving for the rich farmland and abundant fish and game, organized the first Watauga church, the Willow Springs Presbyterian Church in 1867.

Prosperity in Watauga was magnified in 1876 with the coming of the railroad which created an atmosphere of growth lasting until 1930 when the railroad depot was moved to Hodge. In 1960 an economic growth pattern emerged. This ongoing period of accelerated development activity in Watauga is reflected in the population increase from less than 4,000 citizens in 1970 to over 24,000 today.

The City of Watauga was incorporated in 1958 and the first City Hall and Fire Station were completed the same year. In 1980, the original City of Watauga Home Rule Charter was adopted and the current municipal complex was opened. Watauga is led by a Mayor/Council/City Manager form of government, with the Mayor and all seven City Council seats elected at-large. Direct citizen input to City government takes the form of seven volunteer boards and committees, which advise the council on a variety of issues such as parks and recreation, crime prevention and economic development.

Watauga's pro-business environment and its membership in numerous regional and state economic development organizations, provide the assistance needed in bringing business and industry to the area. The City has a bustling business environment of over 300 small, medium and large firms providing a diverse group of goods and services to its citizens.

These businesses support a quality of life unsurpassed by most towns of this size. While the business base includes several national chains, over 90% are owned by independent business people.

In Watauga you can find an ample selection of businesses providing personal and professional services including over forty retail stores ranging from tailor-made suits to auto parts. Several large shopping malls are within a ten minute drive from Watauga and the City is home to banks, major food chains and many restaurants, providing freedom of choice for all of your families' needs.