Following the Civil War, development on Lookout Mountain was minimal. The four-hour trip up Whiteside Pike, a toll road, discouraged many people, and the two-dollar toll discouraged the rest. However, many people were interested in visiting the peak, in part due to the romanticized "Battle Above the Clouds" (more) that occurred on the mountain during The Civil War.

During the railroad boom of the 1880's, speculators decided to develop a hotel on the mountaintop serviced by a narrow gauge railroad that would run up the mountain. A second, broad-gauge line and an earlier incline were also competing for passengers.

On November 16, 1895 the railroad known today simply as "The Incline" opened, rising up the steepest part of Lookout Mountain. Built by John Crass and the Lookout Mountain Incline Railway Company this technical marvel boasted an incline of 72.7% at one point, making it the steepest passenger Incline in the world. Literally millions of residents and tourists have taken this ride up to the top of Lookout Mountain. By 1900 the success of this railway closed down all of its competitors.

Originally the cars were made of wood and powered by huge coal-burning steam engines. Electric power was used after 1911, and it now uses two 100 horsepower motors. Today The Incline Railway still attracts people from around the world.