During World War II, the U.S. Army Transportation Corps had an extensive steam locomotive program in which several types of locomotives were built for use in countries liberated during the war. Among these were 2120 class S-160 2-8-0s, including No. 1702 erected by Baldwin Locomotive Works in 1942. Intended for service overseas, she had the buffer blocks common on foreign engines. However, No. 1702 never left the United States and was placed in service at Fort Eustis, Virginia where she remained until 1960. (Another source mentions Fort Benning, Georgia.) In 1960 she was acquired by the Warren and Saline River Railroad, and in 1972 by the Fremont and Elkhorn Valley Railway. In 1991 the Great Smoky Mountains Railroad bought the locomotive for service on its North Carolina tourist operation.

Of several survivors of this Army S-160 class, No. 1702 is the only one to keep its original number. However, over the years the engine has received several modifications in addition to replacement of buffers with standard North American couplers. As built, this class had a headlight at the top of the smokebox front, but No. 1702's headlight has been centered. Originally a coal burner, she has been converted to burn a mixture of heavy diesel fuel and recovered motor oil. She received a new tender, the original one being preserved at the Galveston Island Railroad Museum. The most far-reaching modification was made in 1997, when No. 1702 was fitted with Timken type AP roller bearings on all axles. However, this bearing design is intended for smaller freight car wheels and could not handle the lateral load created by a Consolidation type on a mountain railroad with extensive curvature. Also, the bearings were of a sealed design that could not be serviced properly by flushing out. Consequently they suffered premature failure, and in 2003 No. 1702's driving axles were refitted with conventional friction bearings. The engine is shown at Bryson City, North Carolina in a 1998 photo by Sharon Kruger.