In 1781 a road built from General Nathaniel Greene's encampment at Hicks Creek, South Carolina to Guilford Courthouse (near Greensboro) was completed. It intersected with a previously built road running from the Yadkin River at Swallow Ford to Crosscreek (now Fayetteville).

People began to meet at this intersection to trade and socialize. The crossroads was first called Hurricane.  Matthew Dockery opened a store at the crossroads in 1793. Soon after, Richard Adams bought 75 acres of land near the store and started the Old Scotch Fair. Hundreds of people from Richmond and surrounding counties gathered semi-annually for festivities. The name Hurricane gave way to Fairgrounds. In 1850 Colonel W. T. Ellerbe acquired 1,077 acres of land which included the mineral springs and the area previously used for the fair. It is from Colonel Ellerbe that the town took its name when it was incorporated in 1911.