[1][2] Morgantown was founded near the end of the American Civil War by George Decatur Morgan, who first arrived in the area, pre-war, via wagon train, driven by a family named "Outlaw."

Morgan worked as a hired hand for the Outlaws, primarily tending to their slaves.

Following his service in the war, Morgan returned to the area, and settled on a small parcel of land approximately one mile south of the town's present location.

In the 1860s, Morgan, along with other early settlers (Daniel McHann, Miland Scott, and George Johns) acquired larger tracts of land in the area, and formed a farming cooperative.

Morgan had many children and other descendants who, over time, purchased land from the original settlers, particularly from the McHann estate.