Established 1855

          In 1810 John McCawley and Seth Evans were traveling west from Fort Vincennes along the old Buffalo Trace when one of their horses died. McCawley sent his companion back for another horse. McCawley stayed behind in a cabin built on the west bank of the Little Wabash River just south and east of Clay City. This made McCawley the first white man to settle in this area. McCawley later decided to build a stage coach stop and trading center on the location which was known as McCawley’s Tavern. It provided a place for travelers to stop, eat, and spend the night.
          Clay County was created by an act of the legislature on December 23, 1824. On Tuesday, the 8th day of March, 1825, at John McCawley’s place, the first county commissioners’ court assembled for the new county of Clay. In 1825 Daniel May donated 20 acres of land, just over 2 miles west of McCawley’s Tavern, to the county for the purpose of constructing a court house. This land is 1 block south of US 50 and to the west of what is now South Main Street. This area had previously been known as Hubbardsville but was renamed Maysville. A 2 room court house was constructed in 1825 and court was held at Maysville until 1841 when it was moved to the new and present county seat, Louisville.
          In 1855, after the O&M Railroad was located about 1 mile north of Maysville, Clay City was established by Mr. J.D. Perkey on the north side of the tracks and mostly to the east of the present North Main Street. The business district soon developed to the south of the tracks where it is presently located. Maysville was made a part of the Village of Clay City in 1862.
          Clay City served as a trading center for the surrounding countryside. Farmers could bring their produce to town and trade it for dry goods, etc. and very little money would change hands. With the passenger trains stopping in Clay City it also served as a source of transportation for the surrounding area. Many of the tourists who traveled to the once famous resort of Sailor Springs would take the train to Clay City and then use local transportation on up to Sailor Springs. That is why the Sailor Springs link is on this web page.
          In 1936 oil was discovered in this area and oil related businesses continue to thrive in Clay City today.