The Town of Independence came into being in 1850 as the settlement of a dispute about where to locate the county seat. At that time, a controversy arose between the people of Old Town and people of the Elk Creek area. Each group wanted the County seat in its area. The final decision, made by three commissioners from adjacent counties, was to locate on the site favored by a group of "independents" and to call the town Independence. These commissioners hiked to the top of Point Lookout Mountain and looked down into a grove of trees where 5 streams met and decided that would be the site for the new town. Independence is located 15 miles west of Galax, 40 miles east of Marion, 29 miles south of Wytheville, and 10 miles north of Sparta, North Carolina. The town provides water, sewer, police, and garbage services.

The population in 2000 was 971. Independence is an incorporated town with a Mayor/Council form of government. Town Council meets the 2nd Tuesday 7pm of every month at the Independence Fire Department, 329 Davis Street.