I bet you are thinking, yes, NC and a state of confusion! No, not even close. It's Tennessee and Virginia. Go to Bristol, TN and VA, and you can go from a store in Virginia to a store in Tennessee. Of course, the sales tax in Virginia is lower...
The state line runs through the middle of State Street, which is their main shopping street. As in many towns, the old department stores and specialty shops have closed, but there is a thriving antiques market in the downtown area. In fact, there are several of them, on both sides of the street.
The sign was erected in 1921, after they had a slogan contest to determine what it would say. The sign is on the National Register of Historic Places! Here's from an old 1930s postcard. This scene is reproduced on a lot of nostalgic goods that you can buy in Bristol.