In the late 1800s and early 1900s, this city was called Gin Town. Because it had the only cotton gin for miles around, the town and community grew. As this community grew, the need for businesses and houses of worship grew as well. One street over from this site, the Union Church was established in the early 1900s. All people of all denominations met and worshiped there as it was the only church for miles around. This city was incorporated November 17, 1945. The first meeting of the town council took place at the old school house on January 16, 1946. Later that year, the original city council established the Graysville Water Works system. In 1949, the city council established the Graysville Gas Board which eventually became the Graysville Municipal Gas System. During the 1950s and 1960s, the local coal mines and steel mills attracted families from all over Alabama. As a result of this growth, Graysville established the City’s first series of home developments and subdivisions. During the 1980s and 1990s, Graysville expanded its city limits by annexing multiple acres in what was then unincorporated in Jefferson County.
Its communities were damaged by an EF3 tornado on January 23, 2012.
Graysville is located at (33.626955, -86.962255). According to the U.S. Census Bureau, the city has a total area of 6.3 square miles (16 km2), all land.
As of the census of 2000, there were 2,344 people, 976 households, and 696 families residing in the city. The population density was 373.1 people per square mile (144.1/km²). There were 1,090 housing units at an average density of 173.5 per square mile (67.0/km²). The racial makeup of the city was 75.26% White, 23.12% Black or African American, 0.43% Native American, 0.34% Asian, 0.17% from other races, and 0.68% from two or more races. 0.47% of the population were Hispanic or Latino of any race.
There were 976 households out of which 24.6% had children under the age of 18 living with them, 50.3% were married couples living together, 16.7% had a female householder with no husband present, and 28.6% were non-families. 25.7% of all households were made up of individuals and 14.0% had someone living alone who was 65 years of age or older. The average household size was 2.40 and the average family size was 2.85.
In the city the population was spread out with 20.9% under the age of 18, 8.2% from 18 to 24, 25.0% from 25 to 44, 25.4% from 45 to 64, and 20.4% who were 65 years of age or older. The median age was 42 years. For every 100 females there were 86.2 males. For every 100 females age 18 and over, there were 83.0 males.
The median income for a household in the city was $30,994, and the median income for a family was $35,938. Males had a median income of $30,692 versus $25,446 for females. The per capita income for the city was $16,328. About 8.2% of families and 11.3% of the population were below the poverty line, including 16.5% of those under age 18 and 13.2% of those age 65 or over.