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Clayton is the county seat, having been established in 1834, two decades after Barbour County was created. Clayton is centrally located in the county. It was situated at the headwaters of the Choctawhatchee and Pea rivers along the historic road that ran from Hobdy's Bridge across the Pea River to Eufaula, on the Chattahoochee River. Clayton was settled by a few settlers as early as 1818. Settlement began in earnest in 1823. Augustine S. Clayton was a Georgia congressman and jurist who gave the town its name. Clayton was established as the county seat for Barbour County in 1833. It was laid out using a square-plan central courthouse plan. Clayton was the location of the first Circuit Court, which took place on September 23, 1833. Clayton's first post office was opened in September 1835 by John F. Keener, who was also the postmaster. The Alabama Legislature incorporated Clayton with 200 residents on December 21, 1841. John Jackson was the first mayor of Clayton after incorporation.
Clayton boasts a rich history with four properties on the National Register of Historic Places. It is also well-known for its Whiskey Bottle Tombstone which was featured in Ripley’s Believe It or Not!