Fayette County was created in 1824. The town of Fayette, once known as Frog Level due to being located in swampland, got its name from the incessant croaking of bullfrogs. In 1883, the Georgia Pacific Railroad was located trough this swamp after leaders of the town of Fayetteville, located one mile north, refused to pay $1,000 to railroad engineer, S.G. James, to run the railroad through the existing town. The first post office, a small wooden shack, was placed here to receive mail from the train once the railroad was complete on 1887. The first name given to the post office was "Frog Level". The name of the town has evolved from "Frog Level" to "Latona"(postmaster's wife) and was eventually voted to be called Fayette. The town has the distinction of having had three courthouses destroyed by fire in 1854, 1866, and 1911. The fire in 1911 destroyed everything downtown except the depot. The old depot was restored in 2002 and now serves as the Historical Society Museum. The centerpiece of the museum is a flag carried by Judge Holland Bell during the Civil War.
The Fayette County Civic Center and Art Museum began as the Fayette Elementary School in 1931. Renovated in 1980, the museum holds more than 3,700 pieces of art, including a major collection of works by folk artists such as Jimmie Lee Sudduth, Los Wilson, and Ben Perkins. The Fayette County Memorial Library was started by a group of ladies in 1922. The old post office, completed in 1936, has been remodeled to house the City Hall. The First National Bank (now Regions) began in 1900 and was purchased in 1909 by the Grimsley Family. The Citizens Bank was opened in 1911 by the Robertson Family who still own and manage the bank. The Public Health Department building stands on the site where the McNeese-Robertson Medical Clinic once stood. In 1943, this medical facility received accreditation from the American Hospital Association and was noted to be the smallest hospital to receive this honor.