 It was one of the first major British outposts west of the Appalachian Mountains, though it was only garrisoned until 1760, when the Cherokee captured it after a lengthy siege.The Tellico Blockhouse, an American outpost located across the river from Fort Loudoun, was built in 1794 to help keep the peace between the Cherokee and the fast-encroaching American settlers.The Tellico agent, the chief American diplomat to the Cherokee, operated out of the blockhouse.