The origins of 'tarheel' are not exactly known, but North Carolina was noted for its production of pine pitch (tar) and turpentine. During the Civil War the term became associated with the tenacity (spelling?) of the North Carolina Confederate troups.

This is a link with a little more detail. If you search around some you get different stories, but they all seem to run along similar lines.

OK. Now this is a Folklore thread.

Janie