On November 12, 1996, Congress passed Public Law 104-333, which created the Tennessee Civil War National Heritage Area. The TCWNHA is one of 23 national heritage areas and the only one to encompass an entire state. It is also the sole heritage area that is coordinated by a university entity, the Center for Historic Preservation (CHP) at Middle Tennessee State University (MTSU).

In August of 1998, Governor Donald Sundquist directed the CHP to create the Compact to implement the Tennessee Civil War National Heritage Area. The Center assembled an interim planning group representing potential stakeholders in the Heritage Area. The group included representatives of Civil War-related National Parks in Tennessee, the Tennessee Historical Commission/Wars Commission, the Tennessee Department of Tourist Development, the Tennessee State Legislature, the Tennessee Civil War Preservation Association, and Tennessee State University's African-American History Conference, among others. The appointed participants met several times between September 1998 and March 1999 to discuss how the Heritage Area could be developed and function most effectively.

In March of 1999, a series of four public meetings were held to receive input from the public concerning the proposed Compact and Heritage Area. An initial draft of the Compact was submitted for comment in May to the National Park Service and the Secretary of the Interior. In May-June of 2000, a series of public forums was held to seek broad input and support for the Compact and the project.

The May-June 2000 public forums to introduce the TCWNHA and gather information were advertised through newspapers, radio, television, and individual mailings. The meetings were held in Spring Hill, Somerville, Martin, Cleveland, Greeneville, Clarksville, and Cookeville.

From the comments and suggestions of those who attended the forums and others who reviewed the draft Compact, a final version was prepared and presented to the Secretary of the Interior who approved and signed the document on January 10, 2001. Governor Don Sundquist signed the compact at a ceremony at Stones River National Battlefield in Murfreesboro on President's Day, February 19, 2001.

In May of 2001, four public forums were held in Knoxville, Memphis, Nashville, and Chattanooga. These meetings further fulfilled the public participation requirement of the TCWNHA. Participants in these meetings learned about and discussed the proposed interpretive themes of the Heritage Area and guidelines for the 2001-2002 applications to receive funding as consulting partners of the TCWNHA.

The TCWNHA Compact and Master Plan was completed by the CHP in December of 2001 and submitted to the National Park Service. It includes an interpretive plan identifying the primary corridors and the Heritage Area's five major subthemes: War Clouds on the Horizon, 1850-1861; Battles and Leaders, 1861-1865; Occupation and Homefront, 1861-1865; Reconstruction, 1865-1875; and Legacies, 1870-1930. Included with each subtheme was a preliminary listing of potential associated properties.

In the spring and fall of 2002, the CHP hired the first staff members dedicated to the TCWNHA.