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Bay Springs took its name from a large spring surrounded by Bay trees. The first trace of a settlement in this spot dates to 1892. It is known that there was a community with at least one store and a sawmill some period before this. However, all records were lost in the fire at the Courthouse in Paulding in 1932.
The majority of the settlers were Baptists, and the Land Marker Baptist Church was built and became the spiritual and social center, and businesses sprang up around it. By 1900, the population numbered forty-six souls. When the M J & K C Railroad was built through the town, lumberman L. L. Denson moved there from Lake Como and became the founder of the Municipality of Bay Springs.
The Bank of Bay Springs was established in 1904, and the Agricultural HIgh School soon followed, with two domitories. A short time later a fire destroyed most of the town, but it was rebuilt by 1906.
In 1906, by an Act of the Legislatuture, Jasper County was divided into two Judicial Districts, with Paulding as the seat of the Eastern District and Bay Springs the seat of the Western District. Thus Jasper County is one of ten counties in Mississippi that have two courthouses.
In 1927, a tornado destroyed the school building and one dormitory. And in1935-36, a road was built from Bay Springs to Rose Hill, the first road connecting the two districts. This road facilitated travel and increased the stature of Bay Springs as a trading area.
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