By Brooxie Carlton, Assistant Commissioner of Community and Rural Development, Tennessee Department of Economic and Community Development (TNECD)
Not long ago, many rural Tennessee communities were focused on preventing decline.
Today, many are planning for growth.
Across the state, rural communities are attracting new residents, supporting local businesses, preparing industrial sites, revitalizing downtowns and creating opportunities that position them for long-term success.
The transformation is not happening because of a single project, program or funding source. It is happening because local leaders, private investors and state partners are making intentional investments in the future of their communities.
At TNECD, we have seen that successful rural development often comes down to a few practical strategies: investing in downtowns, preparing industrial sites, strengthening infrastructure and encouraging private investment.
Investing in Places People Care About
Strong downtowns create places where people want to gather, shop, dine, start businesses and spend time. In many rural communities, downtown revitalization is about more than buildings. It is about restoring community pride and creating places where people want to invest their time, energy and future.
Through the Tennessee Main Street and Tennessee Downtowns programs, communities are creating vibrant downtown districts that support small businesses, attract new investment and improve quality of life. Among Tennessee’s 48 certified Main Street communities, more than 1,000 jobs were created in downtown business districts in 2025, the kind of economic impact any community would celebrate from a major company announcement.
Lauderdale County in West Tennessee offers a strong example of what intentional investment can accomplish.
Communities like Ripley and Halls began in our Tennessee Downtowns program before becoming certified Main Street communities. Ripley also utilized the Tennessee Courthouse Square Revitalization Program, which allows certain tax dollars that would normally go to the state to instead be reinvested directly into the downtown district. Those funds support building improvements, streetscape enhancements and community programming.
Combined with TNECD façade improvement programs, the Main Street approach and events that bring together residents and visitors alike, these investments have transformed downtown districts into centers of activity and opportunity.
The impact has been significant. From 2020 to 2025, Lauderdale County rose more than 240 spots in the economic ranking of counties nationwide. Communities like Ripley and Halls have embraced nearly every downtown improvement tool TNECD offers, and that sustained commitment helped Lauderdale County move out of the distressed county classification in 2023.
Preparing Industrial Sites
While downtown revitalization strengthens the heart of a community, industrial site readiness helps prepare rural counties for new jobs and private investment.
For many companies, a prepared site can be the difference between choosing a community or moving on to another location. That is why site readiness remains one of the most important strategies for rural economic development.
Greene County, currently classified as at-risk, has taken a deliberate approach to improving its long-term economic position by investing in industrial site readiness. Through TNECD’s Property Evaluation Program in 2021, county leaders identified their most competitive industrial properties and began preparing them for future investment.
Since then, Greene County has leveraged approximately $2.6 million in Site Development Grant funding to support grading, infrastructure improvements, utility extensions, due diligence work and site preparation at both the Greene Valley Industrial Park and the Snapps Ferry Road industrial site.
These investments have transformed conceptual sites into competitive assets capable of supporting modern manufacturing and industrial users.
The long-term impact of this work is clear. New industrial projects create jobs, increase payroll, attract private investment and improve the economic indicators that influence county rankings. While those improvements take time, Greene County’s forward-thinking approach demonstrates how strategic preparation today creates opportunity tomorrow.
Strengthening Infrastructure and Community Assets
Infrastructure investments often determine whether a community is ready to compete for future opportunities.
While infrastructure projects may not always be the most visible investments, they are often the foundation for everything that follows. Communities cannot support new housing, attract employers or accommodate growth without reliable water, wastewater, transportation and utility systems.
Since 2019, TNECD has helped fund more than 180 miles of new water and wastewater lines across Tennessee through the Community Development Block Grant (CDBG) program. These investments help communities address aging infrastructure, support future growth and improve quality of life for residents.
Many rural communities are using these investments to solve long-standing challenges while positioning themselves for future opportunities. Take Huntland, for example. Through CDBG funding, the community extended sewer service to 136 residents, 25 businesses and a school. The project also helped support expansion at Appalachian Hardwoods, allowing the company to add jobs after gaining access to sewer service.
Strong infrastructure does more than attract investment. It helps communities retain residents, support local businesses and create confidence that they are prepared for future growth.
Encouraging Private Investment
One of the strongest signs of momentum in a rural community is when people choose to invest there.
Jackson County provides a strong example of how private investment can help drive rural revitalization. Over the past several years, investors have contributed to projects ranging from a conference center and resort to the planned spring 2027 opening of a boutique hotel in a long-vacant downtown building. These investments have created momentum, attracted additional interest and reinforced confidence in the community’s future.
Among those investing in Jackson County’s future are Natasha and John Deane. When they first began visiting Gainesboro in 2018 and became involved with the local Chamber of Commerce, they found a community in the early stages of renewal after years of economic struggle.
Inspired by the community and its potential, the Deanes chose to invest in downtown Gainesboro through the creation of Miss Sallie’s Market. During the building’s restoration, stories resurfaced about Sallie Reed, who once operated the town’s only grocery store. With the blessing of the Whitaker family, the market was named in her honor, celebrating both Gainesboro’s history and the resilience that continues to define the community today.
Combined with TNECD downtown development programs, historic building investments and infrastructure funding, private investments like these have helped Jackson County move out of and remain out of distressed economic classification since 2020.
Private investment plays an important role in rural development because it builds confidence, creates momentum and demonstrates a long-term belief in a community’s future. When people choose to invest in a community’s success, they often inspire others to do the same.
Long-Term Commitment Creates Long-Term Success
The momentum happening across rural Tennessee is not accidental.
In 2023, 90 of Tennessee’s 95 counties gained population. In 2024, 85 counties continued to grow. For rural communities, this represents an incredible opportunity to welcome new residents, strengthen local economies and build long-term prosperity.
Since 2020, TNECD’s Community and Rural Development programs have supported more than 2,400 grants totaling $1.5 billion in funding. Gov. Bill Lee, the Tennessee General Assembly and local leaders across the state have made historic investments in rural communities because they understand that long-term growth requires long-term commitment.
But successful rural development does not happen overnight.
Communities do not move out of economic distress in a single year. Progress requires patience, sustained investment and partnerships that last years, not months. When Gov. Bill Lee was running for office in 2018, 19 Tennessee counties ranked in the bottom 10% of counties in the nation economically. It was announced last week that just 10 counties fall into that category for fiscal year 2027. The progress has been consistent and widespread, with more than 70% of Tennessee counties improving their economic rankings over the last year.
Across Tennessee, we are seeing proof that when local leadership, state investment and private partners work together, rural communities can create lasting prosperity for generations to come.
The story of rural Tennessee is not just about growth. It is about people choosing to invest in the places they call home and seeing those investments pay off.