Clay County was formed by an act of the Alabama General Assembly on December 7, 1866.

Less than a year later, Ashland was established as the county seat on land donated by Hollingsworth Watts for the construction of a courthouse.

In 1871 Ashland was incorporated and named for 19th century statesman Henry Clay's Kentucky estate home.

The 1930s brought the Great Depression and boll weevil to Ashland that destroyed the cotton industry.

Timber, poultry, and cabinet making became the dominant industries by the beginning of the 21st century.

[5] The climate in this area is characterized by hot, humid summers and generally mild to cool winters.

[6] Ashland first appeared on the 1870 U.S. Census[10] as an unincorporated village, incorporating as a town the following year.

The 6th beat (precinct) of Clay County also bore the name of Ashland, and has continued to report to date (2010), becoming a census division in 1960.

As of the 2020 United States census, there were 1,984 people, 677 households, and 333 families residing in the town.