Collinsville burned twice. On December 24, 1884, the Collinsville Depot, Hall-Mackey Store and other businesses were destroyed. Flames again swept the town on February 2, 1900, damaging and destroying businesses and homes including: B.A. Nowlin store (where the fire began), J.W. Collins Grocery, Morris & Morris Music House, The Oliver Hotel, Postmaster J.H. Collins residence, Hall's Dry Goods Co., I.Q. Melton, Nicholson & McWhorter building, R.L. Wright, Jeweler, Boston Killian Furniture and Livery, J.L. Ford Harness and Shoemaker, J.E. Smith building, A.B. Tidmore building, G.W. Roberts Warehouse, R.A. Burt Livery, W.H. Appleton residence, Charles Roberts Groceries, G.W. Keener General Merchandise, J.W. Lackey building, W.A. Wilbanks General Merchandise, Collinsville Post Office, and Dr. J.A. Hall, Dentist. Collinsville rebuilt after both fires.
Location was a major factor in mid-nineteenth century growth of Collinsville. The plush valley, once home of the Cherokee, was situated on a well established trade route from Rome to Gunter's Landing and from Tuscaloosa to Ross's Landing. The Town suffered as it was inundated annually with flood waters from heavy rains that rushed down Lookout Mountain causing Little Wills Creek to overflow onto Main Street and into businesses and houses as well as Collinsville School. Flood waters frequently peeked at 30 inches causing considerable loss to those in the creek area. This dire situation continued until 1939 when the U.S. Congress-approved flood control project was completed.
The Town of Collinsville was incorporated May 5, 1887. James C. Tiner was elected as the first mayor and James Coker, Therlin M. Fearing, T.G. Mackey, B.H. Nicholson and Bonner Heard as alderman.