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Clay County was established as Arkansas's number 67 county on March 24, 1873. It was named Clayton County after John M. Clayton who was a member at the time of its creation and was a brother to then-U.S. Senator Clayton. Although some sources suggest that it was named after Senator Powell Clayton, others believe it might have been named after Powell Clayton.
The Arkansas General Assembly shortened the name of the county to Clay two years later, on December 6, 1875. Some say it was named after Henry Clay while others claim that John M. Clayton is the official name. It was believed that the name change was motivated by lingering suspicions about Powell Clayton. He had declared martial law in the county and suspended elections there in 1868 when he was Governor of Arkansas. The county was still part of Greene County.
Corning was established as the county seat in 1873 with the establishment of the St. Louis-Iron Mountain and Southern Railway. It also became the first county-incorporated city in the county. In 1877, the county seat was moved from Corning to Boydsville. This was in an area known as "Old Bradshaw Field" because it was difficult for people east of the Black River and Cache Rivers to get to Corning during flood season. This caused problems for people living west of rivers. In 1881 Corning was re-established as the seat in the Western District. Boydsville remained the seat in the Eastern District. Other towns like Greenway, Rector, and Piggott saw growth with St. Louis, Arkansas, and Texas Railroad's arrival in 1882. The Eastern District seat was moved from Washington to Piggott in 1887. Today, the dual county seat system is still in effect. As their venue, important county functions alternate between Piggott and Corning.