The area was originally populated by Native Americans of the Cherokee, Creek and Chickasaw tribes. These tribes used the land as a hunting ground until the late 19th century when a gristmill and sawmill began operating on the river. The Falling Water River was used to generate hydroelectric power for the city of Cookeville from 1928-1944. In 1973, the territory became a designated Tennessee State Natural Area, protecting the diverse forest and aquatic habitats.