The town of Cowan dates from the mid-19th century and developed mostly as a railroad town. It was the site where several branch lines met the main Nashville to Chattanooga trunk of the Nashville, Chattanooga and St. Louis Railway which ran through the important Cowan Tunnel. As the last stop before the uphill climb onto the nearby Cumberland Plateau, pusher engines to assist trains in making the steep ascent were based there, and are still in use today. The old passenger depot, built in 1904, was restored as a museum, and is a focal point of the downtown area.
The city is situated at the western base of the Cumberland Plateau. The edge of the Plateau juts out in a series of ridges creating several small valleys in the area, including Hawkins Cove to the northeast and Keith Cove to the south. Boiling Fork Creek, a tributary of the Elk River, runs through Cowan, offering scenic boating and fishing opportunities.
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