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Railroad construction led to the development of many towns in the state, including Luverne.
The Montgomery and Southern Railway was established on July 2, 1880, to build a new railroad connecting Montgomery with the Florida coast. By September 1882, the company had completed 30 miles of narrow gauge railroad. In May 1886, the company was reorganized under the Montgomery and Florida Railway. It then became the Northwest and Florida Railroad in August 1888. The railroad reached Luverne, in the middle of Crenshaw County near the Patsaliga River, in November 1888. The line now totals 51 miles and was converted to standard gauge in July 1889. It was then decided not to continue. Alabama Terminal and Improvement Company was a subsidiary of the Alabama Midland Railway. The railroad from Montgomery to Luverne was integrated into their network by 1889.
It attracted other development and the town grew. It was incorporated in 1891. The town became a hub for timbering in southern Alabama's Piney Woods.
Crenshaw County residents voted in 1893 to move the county seat of Rutledge to the larger Luverne.
In the 1930s, lynchings were more common in smaller groups or secretly than in large public displays. Jesse Thornton, an African-American male, was executed in Luverne on June 22, 1940, for not addressing a white man with "Mister" as his title. His body was found later in the Patsaliga River. He was shot to death. According to the Equal Justice Initiative, Thornton was apparently an officer who had been offended by Jim Crow laws. This was the county's only recorded lynching.