In the late 1950's East Tennessee Natural Gas Company built a natural gas pipeline to serve the AFG Industries plant in East Hawkins County. A small group of local businessmen headed by local banker and industrialist, Robert S. (Bob) Lane, realized the importance of natural gas for commercial and industrial recruitment and growth. These men petitioned the Hawkins County Court to establish a natural gas utility to provide gas service to Hawkins County.

On December 16, 1957, the Natural Gas Utility District of Hawkins County was created by order of Chairman John K. Williams of the County Court of Hawkins County. Robert S. Lane, Lance W. Rogan and George O. Baker were appointed to serve as the Board of Commissioners.

On May 6, 1962, following an engineering and feasibility study, the Board passed a resolution authorizing the issuance of $1,975,000 Natural Gas System Revenue Bonds to finance the construction of a natural gas system. Due to overly optimistic engineering, the repayment of the bonds were extended beyond original expectations. Since 1980, the District has been current on all bond and interest payments and has attained an excellent credit rating.

During the first year of operation the District had 283 customers, 6 employees, gross revenue of $52,511 and net revenue of ($24,273). Currently, the District has 8,100 customers, 43 employees and gross revenues of $13,400,000, with assets of almost $17,400,000. A large part of the growth of the District can be attributed to the implementation, in 1978, of an aggressive gas appliance sales program. Realizing that you cannot sell gas unless there are appliances burning gas, all employees became "sales people", and many gas appliances were added to the system.

The District is governed by a three (3) person Board of Commissioners. During the 50 year history of the District, only 8 men have served on the Board of Commissioners. George Baker resigned due to employment transfer in 1966, resulting in the appointment of Byron Rogers who served until his death in 1995, resulting in the appointment of Henry Price. Henry Price retired in 2007 due to health reasons resulting in the appointment of Tommy Young. Lance Rogan resigned due to health in 1990, resulting in the appointment of J.B. Howe who served until his death in 1994, resulting in the appointment of Reed Matney. Robert Lane served until his death in 1992, resulting in the appointment of Fred Montgomery. These dedicated public servants have contributed greatly not only to the success of the District but to the growth and success of the entire community.