The Town of Tabor City was incorporated in 1905. Over the years the local economy grew. In 1909 the first tobacco warehouse was built. The number of tobacco warehouses increased to three, but no tobacco warehouses are in operation today. Until the mid-1930s the railroad used the name of Mt. Tabor while the Post Office used the name Tabor. Both names have since changed to Tabor City. It was not until the mid-1930s that Tabor City became known as the “Yam Capitol of the World”. An annual festival was initiated in 1948 to pay tribute to the sweet potato. Today, this festival is known as the “North Carolina Yam Festival”. The festival is always held on the fourth Saturday in the month of October.
Today the Town is transitioning from tobacco-based agriculture and textiles to one based on light manufacturing, service, retail, and tourism — governed by a mayor, town manager and four councilmen. Agriculture remains an important part of the local economy, but its future impact on the economy is expected to decline. The proximity to the Grand Strand beaches in Horry County, South Carolina and the North Carolina beaches of Brunswick County, North Carolina has driven the local economy over the past ten years. Growth is anticipated in the housing sector as retirees continue to relocate to the coastal areas. The impacts of heavy rains and flooding has been an ongoing concern for the community and the town looks forward to working with the American Flood Coalition.