The town was laid out in September 1802 on land owned by Ichabod Corwin, Silas Hurin, Ephraim Hathaway, and Samuel Manning in Sections 35 and 35 of Town 5, Range 3 North and Sections 5 and 6 of Town 4, Range 3 North of the Between the Miami Rivers Survey. Lebanon was named after the Biblical Lebanon because of the many juniper or Eastern Red cedar trees there, similar to the Lebanon Cedar. It is known today as "The Cedar City".