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The Hindman Settlement School was established at Hindman, Knott County, Kentucky in 1902 with funding from the Women's Christian Temperance Union. In 1915 it became an independent, non-denominational corporation whose purpose was to "maintain a school for industrial, intellectual and moral training in the mountainous, destitute or needy portions of Kentucky." In addition to basic academic subjects there were courses in manual arts, home economics, agriculture, folk art, and music. Facilities grew to include a grade and high school, library, manual arts training shop, model farm, sawmill, hospital, dormitories, and recreation building. As the county school system assumed more responsibility for the area's education, the settlement school began focusing on adult education and developed in-service training programs for public school teachers in the areas of creative writing, art, and music.

The school was named in honor of Olive's late husband John C. Campbell, and was modeled on a Danish approach to adult education. Starting with an old house and log barn, the school expanded to include a farm, dairy, forge, shop, crafts, and recreation program and forestry program. The school curriculum was a blend of home and farm management skills with reinforcement of pride in local culture, especially the musical and crafts heritage. The school was also active in establishing such cooperative community efforts as the Mountain Valley Creamery, the Craft Guild, and a Credit Union for farm improvement. Mrs. Campbell retired from the directorship in 1946 and was followed by D.F. Folger, George Bidstrup, John Ramsay, and Howard Kester consecutively. The Folk School continues into the 21st century as a center for education and cultural enrichment. Major year round learning opportunities include courses in weaving, woodworking, blacksmithing, enameling, leatherworking, and pottery. Annual events include Folk-Dance Week, Little Folk School for Children, and the Fall Arts, Crafts, and Music Festival.

Arnow grew up in Wayne County, Kentucky, attended Berea College, and graduated from the University of Louisville (1930). She taught school in Louisville and Pulaski County before moving to Cincinnati in 1934 where she produced several essays and two novels, Mountain Path (1936) and Between the Flowers (posthumously 1999). Publications that followed her 1944 move to Michigan include Hunter's Horn (1949), The Dollmaker (1954), Seedtime on the Cumberland (1960), Flowering of the Cumberland (1963), The Weedkiller's Daughter (1970), The Kentucky Trace (1974), and Old Burnside (1977). A film rendition of The Dollmaker starring Jane Fonda was released in 1984. On several occasions, Arnow served as an instructor at the Hindman Settlement School's Appalachian Writers Workshop. She died March 21, 1986 and was buried at her farm at Keno in Pulaski County, Kentucky.