Nonperturbative terms in the free energy of Chern-Simons gauge theory play a key role in its duality to the closed topological string. We show that these terms are reproduced by performing a double scaling limit near the point where the perturbation expansion diverges. This leads to a derivation of closed string theory from this large-N gauge theory along the lines of noncritical string theories. We comment on the possible relevance of this observation to the derivation of superpotentials of asymptotically free gauge theories and its relation to infrared renormalons.