The Terra Cotta community was originally a company town for workers of the Pomona Terra Cotta Manufacturing Company. Built in 1886, the company primarily produced terra cotta pipes used in sewage systems across North Carolina as well as products like roof tiles and chimney liners. Company towns like Terra Cotta were communities built around one employer who provided housing as well as shops and other amenities. The Terra Cotta community was primarily African American families who moved to the area for the work. Although the company also employed white workers, they primarily lived in nearby unincorporated Pomona.