In 2004, Duke Energy's Crescent Resources made a deal with NCDPR to sell undeveloped land around Lake James for an expansion of Lake James State Park, and they offered trail easements for the Overmountain Victory National Historic Trail on their properties.[5] Two years later, Duke Energy started the process of re-licensing their hydroelectric dams on Lake James with the Federal Energy Regulatory Commission. Public comments during the re-licensing encouraged Duke Energy to develop a loop trail around Lake James, which would connect all communities, recreational, commercial and residential properties, the Overmountain Victory Trail, and local/state parks along the lake.[5]
The loop trail concept was initially called the Lake James Loop Trail, but it was later renamed after the community of Fonta Flora, which was partially submerged with the creation of Lake James.[6][3]
On June 15, 2015, the General Assembly of North Carolina established the Fonta Flora State Trail, and directed NCDPR to coordinate its development.[2]
During the master planning process for the state trail, its concept was expanded with connections from Lake James to Asheville and Morganton.
On April 17, 2018, the Foothills Conservancy donated 90 acres (36 ha) of undeveloped land near Old Fort to NCDPR for the trail.[7] The conservancy also obtained trail easements from adjoining property owners for future construction of the trail.[3] The property follows a ridge near Camp Grier, and the Foothills Conservancy will manage it on NCDPR's behalf.[3]