[verification needed] The town was established on an old stagecoach line and was for many years the main trading center of Yazoo County, including a large part of Madison County east of the Big Black River.

The famous railroad accident that killed 37-year-old engineer Casey Jones happened near Vaughan in the early morning hours of April 30, 1900.

[3] On July 24, 1953, a ceremony was held at Vaughan, where more than 3,000 persons gathered to witness the unveiling of a bronze marker at the spot where Casey met his fate.

Beneath Casey's name, the following legend appeared: "A famous ballad, the folklore of American railroading, and a postage stamp commemorate the colorful and courageous engineer who was killed in a wreck here in 1900."

The museum began as a project of Massena Jones (no relation) in a building he owned across the road from the present site.