In response to the post by Gritchka, I am presenting the prelude to the State of Franklin, and a couple of clarifying points of interest.

In 1769 the Watauga River Valley and the surrounding areas started to be settled. In 1772 the group of settlers formed what was then called the Watauga Association which consisted of property that is now located in the North Eastern Tip of Tennessee. This association was formed not only as a defense from the Cherokee but also from the Choctaw as well.

Several years later, a survey of lands found that the property claimed by the Watauga Association were in fact part of the claim that North Carolina held. Shortly after the survey, the settlers of the Watauga Association pledged to assist North Carolina in the Revolutionary effort if they would reclaim the lands. North Carolina agreed to the provisions, and the Watauga Association was absorbed back into North Carolina.

Because the settlers of the Watauga Association were used to "Self Government," it soon became common practice to shoot and steal from the North Carolina tax collectors. This led to North Carolina's failure to build up infrastructure in the area such as roads, bridges, and militia. This made the settlers in the old Watauga Association unhappy, and restless. Combined with the additional Indian raids on the ever growing western North Carolina, the state decided that it could no longer afford the extra tax penalty owed Congress (due to the Revolutionary War) and opted to cede the western lands to Congress (as noted above). In retaliation, the settlers created the "State of Franklin" to spite and purposefully ignore the control of North Carolina.

One important thing to note is that the Davidson County that was part of the State of Franklin is indeed the parent county of what is now known as Davidson County, Tennessee where Nashville, Tennessee is currently located. At the time of the State of Franklin, the county encompassed the majority of the western area of now Tennessee. Davidson County did not however originally join the State of Franklin, but chose to remain independent from government control until Indian raids on the Davison lands increased to the point where assistance from Franklin was requested.

I hope that helps to clarify some additional points regarding the State of Franklin.