Highland County was formed in 1847 from Bath and Pendleton counties. The county encompasses 416 square miles of spectacular mountain terrain and received its name from its prevailing high altitude. Highland County is rich in historic tradition. The Battle of McDowell was waged in Highland County during the Civil War. This was a significant battle in Stonewall Jackson's 1862 Valley Campaign. Monterey, the county seat, was established in 1848. Highland County is also rich in its natural resources. Agriculture plays a major role in Highland's economy.