The Town of Lexington had its beginning on January 24, 1820 with the purchase of two acres of land from Anna Barbara Drafts Corley (Granny Corley) for establishment of a new court house and jail for Lexington County. Previously the county seat of government had been the town of Granby located where Cayce is today. Granby was a low, unhealthy area often flooded in the spring. Mrs. Corley's land was selected for its central location and its healthy atmosphere among the pine trees.

The Town of Lexington grew up around the courthouse and was indeed called "Lexington Court House" until 1900. Most of the town's early settlers were descendants of older area families mostly of German ancestry. Prior to the Civil War, Lexington could boast of having the Lutheran Seminary, two churches, two newspapers, a small textile factory, a carriage factory and the usual businesses necessary for a courthouse town of that era. A municipal charter was issued on January 28, 1861.