The success of the tobacco industry in the late 19th and early 20th century encouraged the then-growing textile industry to locate just outside of Durham. The early electrification of Durham was also a large incentive. Drawing a labor force from the economic demise of single family farms in the region at the time, these textile mills doubled the population of Durham. These areas were known as East Durham and West Durham until they were eventually annexed by the City of Durham.
Much of the early city architecture, both commercial and residential, dates from the period of 1890–1930.
Durham quickly developed a vibrant Black community, the center of which was an area known as Hayti, (pronounced HAY-tie), just south of the center of town, where some of the most prominent and successful black-owned businesses in the country during the early 20th century were established. These businesses — the best known of which are North Carolina Mutual Life Insurance Company and Mechanics & Farmers Bank — were centered on Parrish St., which would come to be known as "Black Wall Street." In 1910, Dr. James E. Shepard founded North Carolina Central University, the nation's first publicly supported liberal arts college for African-Americans.
In 1924, James Buchanan Duke established a philanthropic foundation in honor of his father Washington Duke to support Trinity College in Durham. The college
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