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Eutaw was established in December 1838, when Greene County voters decided to move the county seat from Erie. It was situated on the Black Warrior River. It was incorporated by an act of state legislature on January 2, 1841.
As the county seat, Eutaw was also the county's trading center. It developed an economy that relied on the cultivation and processing of cotton, the main commodity crop of the antebellum era. Major planters made a fortune from the crop, dependent on enslaved African Americans' labor. They built beautiful homes in the city. Many of these structures have been preserved. Eutaw is home to 27 antebellum structures that are listed on the National Register of Historic Places. These structures are all included in the Antebellum Home in Eutaw multiple-property submission. Each of the listed properties is the Coleman-Banks House and Old Greene County Courthouse as well as First Presbyterian Church and Kirkwood. The Greene County Courthouse Square District, a historic district listed downtown, is also included. The register also lists Everhope Plantation, a nearby property.
Eutaw was the scene of many Klan killings and insurgent acts during Reconstruction. In 1868, the county courthouse was set on fire. The most common explanation for the destruction of the courthouse's records is that 1,800 suits were filed by freedmen against planters. Alexander Boyd, the Republican county solicitor, was killed in a gun battle at his hotel by Klan members. James Martin, a black Republican leader was also killed in Union, Alabama that night.
