[1] In 1784, Elijah Craig established the town of Lebanon, Virginia near McClelland's Station, an abandoned army fort.

[4][5] The Payne-Desha House was built on the west side of Royal Spring Branch on land originally owned by Elijah Craig.

[2][3] James Y. Kelly owned the property in the later part of the 19th century when extensive changes were made to the exterior of the house.

[2] As first built, the house featured "an arch spanned central hall, a winding staircase, ash floors, sunburst design mantels, beaded and fluted woodwork, three basements, and a hipped roof", making it one of the most intricate early stone structures in Scott County, Kentucky.

[2] The exterior of the house was altered in the late 19th century with the addition of Italianate style porches, hood moulds, and roof brackets.