Wallace, originally named Jacksonville,[4] is a town located in Jackson Township, Fountain County, Indiana, United States.

Jacksonville, one of Fountain County's early settlements, was established by John Bowman and his father Henry in the early 1830s on land situated just north of Mill Creek and was named for Andrew Jackson.

Early tradesmen in Jacksonville included William Snooks, the township's first blacksmith, Samuel Glass who operated a house of entertainment, shoemaker Alvah Doke, cabinet-maker George McCline, physicians Dr. Reeves, Dr. A. M. C. Hawes and Dr. Joseph Roberts and various general storekeepers.

An 1881 history offers the following description of the town's businesses: In comparatively recent times Noah and Charles Grimes, Bayless and Jacob Carter, — Cunningham & Smith, and several others, had stores.

The present dealers are John Murphy, David Oliver, and Johnson Clore.

A blacksmith and a chair shop are in this place, and a house which welcomes the hungry traveler and jaded animal with entertainment is also to be found.

Somebody with business sagacity keeps constantly on hand a stock of coffins as a sign that there are two doctors in the village.

[4] In 1950, the list of merchants in Wallace included; Ira Wilkinson General Store, J. W. Grimes Grocery (which also housed the post office), Ralph Myers TV and Appliances, Carl Starnes Insurance, Uplinger Cafe, Paul Mitchell Barber Shop, McGinnis Garage, Clores Grocery and Lunch, Ellingwood's Lumber Yard, Alward's Skelgas Service and the office of H. M. Rusk physician.

[5] Wallace is located adjacent to Mill Creek, which flows from the northeast and borders the town to the east and south.

2008 cost of living index in Wallace: 72.5 (low, U.S. average is 100) At the census of 2010,[8] there were 105 people, 52 households, and 28 families residing in the town.