Clayton has been the county seat since 1834, two years after the creation of Barbour County. Clayton is located geographically in the center of the county. The town was located at the headwaters of the Pea andChoctawhatchee rivers on the historic road from Hobdy's Bridge over the Pea River to Eufaula on the Chattahoochee River. By 1818, there were a few settlers in the area around Clayton, but settlement began in earnest around 1823. The town was named for Augustine S. Clayton, a Georgiajurist and congressman. Clayton became the county seat of Barbour County in 1833 and was laid out on a central courthouse square plan. The first Circuit Court was held in Clayton on September 23, 1833. The Clayton post office was established in September 1835 with John F. Keener as postmaster. Clayton, with a population of 200, was incorporated on December 21, 1841, by the Alabama Legislature. Its first mayor, after incorporation, was John Jackson.
Clayton has a rich heritage with four properties listed on the National Register of Historic Places. Clayton is also known for its Whiskey Bottle Tombstone, which was featured in Ripley's Believe It or Not!.
Clayton is served by Barbour County Schools. Barbour County High School and Barbour County Primary School are located in the town of Clayton.