Carrollville was founded in the year 1834. This settlement served as a trade center for the entire southeastern portion of Old Tishomingo County being situated on the Old Tuscumbia-Pontotoc Road. By the year 1840 the settlement had five drugstores, three saddle shops, two blacksmiths, two tailors and five doctors who were Drs. Burton, Boothes, Scruggs, Long and Smythe. The settlement had only one church in which all denominations worshipped. Carrollville declined almost overnight when the Mobile and Ohio Railroad was completed two miles away at Baldwyn.

There was a post office, a voting precinct established in the year 1841. At a meeting of the board of police in January of 1843 the first business transaction was a permit, or to grant license to Porter Walk to run a saloon in the town of Carrollville. It is said by historians that this was the home of old Chief Tishomingo, probably in the early 1830’s.