Beginning in the middle of the 19th century, the falls at Tallulah were a premier tourist destination.  It is home to one of the most spectacular canyons in the eastern United States, Tallulah Gorge is the jewel of the city. At three miles long and nearly 1,000 feet deep, visitors can hike rim trails to several overlooks or can hike to the gorge floor (with free permit). A suspension bridge, located 80 feet above the rocky bottom, provides spectacular views ofthe river and waterfalls, and offers great photography opportunities. Incorporated in 1884, the City of Tallulah Falls lies partially in Rabun County and partially in Habersham County. However, a large part of the population, about 200 people, lives in Rabun County.

Tallulah Falls came to be  after a railroad line from Athens to Commerce then on to Tallulah Falls and into Clayton.  Businessman Rufus Lafayette Moss Sr. was instrumental in bringing the railroad to Tallulah Falls.    After the Civil War Moss built his summer home in Tallulah Falls.  This summer home was named Pine Terrace and was completed in 1880.  Moss began buying all the land in the area that he could.  At that time the land was very inexpensive.  After the railroad line was completed in 1882 wealthy tourists began coming to the area.  Moss not only owned Pine Terrace but several hotels in the area where the tourists would stay.  With the rail line going down in to Clayton and beyond people began to flock to the area.  The town of Tallulah Falls continue to boom with 17 hotels in the area.  One of the guests of the Moss family that visited Tallulah Falls was Mary Ann Lipscomb who saw the need for education for the all the children running around the town.  She started the first school that has turned into what is now Tallulah Falls Schools.

Pine Terrace is still standing in Tallulah Falls on Hwy 441.  It is being restored with the intention of saving this historic landmark to Tallulah Falls and Rabun County.