People from Europe first moved to the area in 1775. The town is named after the city of Lexington, Massachusetts, where the first battle of the American Revolutionary War happened. Lexington became a city in 1828. Until the late 1990s, Lexington's economy was based on textile and furniture manufacturing. Since then, most local manufacturers have moved their production facilities to Asia and Mexico to reduce costs. This caused most textile and furniture factories to close, creating economic difficulties in the area.