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Rainbow City is a city in Etowah County, Alabama, United States. It incorporated in 1950. The population was 9,602 at the 2010 census. It is part of the Gadsden Metropolitan Statistical Area.

This city was named after U.S. Highway 411, called Rainbow Drive, which runs through the middle of the city. Some of the older citizens say it was named after the US 42nd Infantry Division, known as the “Rainbow Division”.

As early as 1818, families from the Carolinas and Georgia began to migrate to the area and homestead land near the Coosa River. Hernando de Soto’s troops were the first visitors to the area in 1540, and today a bridge stands where the Pensacola Trading Path crossed the Coosa River. A paved highway now traces the trail that was cut from Nashville to Horseshoe Bend by Andrew Jackson on his way to fight the Creek Native Americans in what is now known as the Battle of Horseshoe Bend.