This paper describes a novel species of Trautvetteria as well as provide information on the newly characterized habitat in which it occurs. The discovery of morphologically distinct populations of Trautvetteria in a novel habitat has prompted an investigation of the habitat and resulted in the description and illustration of this novel species, T. fonticalcarea sp. nov. from the Powell River valley of northeast Tennessee, USA, North America. The morphology of T. fonticalcarea is discussed in comparison to the allopatric T. caroliniensis which occurs in physiographic provinces east and west of the new species. In addition, the floristic components of the habitat of T. fonticalcarea are discussed with six species reported as new to the state of Tennessee: Carex interior, C. tetanica, C. woodii, Nabalus albus, Patis racemosa and Triantha glutinosa, and another species, Rhynchospora capillacea, rediscovered in the state. Several other species present in the habitat reach their southernmost geographic distribution here and are also rare for the state. Not only the novel species, T. fonticalcarea, but also the habitat are sufficiently rare and distinctive that they should be a focus for conservation efforts.