Fayette County was created by act of the Indiana General Assembly in December 1818 from portions of Wayne and Franklin counties and unincorporated ("New Purchase") territory in the northern portion of the county. It was named for the Marquis de la Fayette, a French hero of the Revolutionary War. Connersville, then a small village of less than a hundred inhabitants, was designated the county seat. The county was divided into five townships (Harrison, Connersville, Jennings, Columbia, and Brownsville) in February 1819, Connersville Township containing the namesake town. In 1821, the organization of Waterloo Township subsumed the portion of Brownsville Township remaining in Fayette County, along with a portion of Harrison Township west of the Whitewater River.