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John Coffee, Robert Beaty, and John D. Carroll founded Athens in 1818. It was incorporated in 1819, one year before the state's admission to the Union. An 1818 act by the Alabama Territorial Legislature created Limestone County. Although the town was originally called Athenson at first, it was later incorporated as Athens following an ancient Greek city. Samuel Tanner was the town's first mayor. The Tanner area south of Athens was named in his honor.
William Wyatt Bibb was born in Athens and served as the first governor of Alabama. His brother Thomas Bibb succeeded him when he fell from his horse.
Local residents bought 5 acres of land in 1822 and built a building for the Athens Female Academy. In 1842, the school was affiliated with the Methodist church and became Athens Female College. The school became coeducational in 1932 and changed its name to Athens College. The college was taken over by Alabama in 1974 and converted to a "reverse college," which offers the last two years of instruction to graduates of local community colleges. Today, it is known as Athens State University.
Many homes found in central Athens are from the antebellum period and are preserved as historic districts.
Union forces led by Col. John Basil Turchin, commander of the Union forces, captured Athens on May 2, 1862, during the Civil War. Turchin, who occupied the town on May 2nd, 1862, assembled his men and said to them: "I closed my eyes for two hours." I see nothing." In fact, he did leave the town to reconnoiter defensive posts, and his men ransacked it. Turchin was vilified by Lost Cause supporters.
Athens was home to Governor George S. Houston. He served as Alabama's first post-reconstruction Democratic governor from 1874-1878. Houston is known for reducing debts to private railroad speculators, and other Reconstruction Republican predecessors. Athens was home to the Trinity School, which was founded by Mary Fletcher Wells for former slaves. It was funded by the American Missionary Association.
Athens was once a town of cotton and railroads. However, since the 1960s local aerospace boom, Athens has been increasingly in the orbit of Huntsville, as Huntsville's cotton production has declined.
Athens is home to Browns Ferry Nuclear Power Plant. This Tennessee Valley Authority installation was first operational in 1974 and was once the largest nuclear power plant in the world. It is home to many local jobs and provides most of the electricity for the Huntsville-Decatur Metro Area. The Browns Ferry nuclear plant was the site of what was the worst nuclear accident in American history except for the Three Mile Island incident. The reactor was temporarily threatened by a worker who lit a candle to check for any air leakages.