Founded in 1821 as the South Carolina Lunatic Asylum, it was one of the first public mental hospitals established in the United States.

Its original building, designed by Robert Mills and featuring the latest innovations in fire resistance and patient security, was built between 1822 and 1827.

Known first as the Palmetto State Hospital then later named Crafts-Farrow Hospital, its campus served for many years as a geriatric care facility, and now houses multiple divisions of the Department of Mental Health, including Public Safety, Training and Research, Information Technology, Food Services, Print Shop, etc.

Ongoing issues with staffing, funding, and patient conditions persisted in the 20th century, and the state began transitioning mental health care into community settings in 1920.

While the Department of Health and Environmental Control still occupies the Mills-Jarrett complex, the remainder of the campus has been sold to a private developer.

The Department of Mental Health ended its use of the site in December 2015, when the William S. Hall Children's institute relocated to another campus.