Chadbourn was incorporated on March 7, 1883, by the North Carolina Legislature, with an economy based on timber and naval stores. Later, as timber supplies became depleted, agriculture emerged as the economic base of the community. This led to the introduction of strawberries to the area, and the first crop was planted in 1895. By 1907, production had increased to 347,000 32-quart crates, and Chadbourn became the Klondyke Strawberry Capital of the world. In 1926, members of the American Legion Post decided to begin a Strawberry Festival, which has continued through the years. It is now the oldest agricultural festival in North Carolina