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The county court appointed John G. Simmons and William S. Stidham to choose a site for the courthouse. They also named the new town. Their recommendation was accepted by the court on December 2, 1871. The location was close to the county's center. The site was named Star City by the court, but some claim it was named so because the courthouse was built in the midst of five hills that look like stars. Star City's first post office opened in March 1872. It was moved from Branchville. The county court ordered that the county records and the seat for justice be moved to Star City on October 2, 1872. This was a move from Branchville, which was just a few miles away. The court was moved to a two-story wooden building leased by the landlord.
Star City was established on July 3, 1876, with approximately 300 inhabitants. Iverson S.Goodwin was elected mayor. M. S. Cook was the first treasurer of the city. Charles H. Lyman and James W. Hellum were among the first members of the city council. James Smith was also a member. Mart Cunningham and Edmund D. Petty. This two-story structure was used as a courthouse from 1880 to 1880.