In 1833 Water Valley was occupied by Chickasaw Indians and early settlers. It was a dense cane break with a creek called, "Swett Water" (now Town Creek). The Great Stage Route from Langrange, Tennessee, passed through Water Valley. In 1833 the Mississippi Legiaslature passed the formation of 17 counties, including Yalobusha (indian name "Tadpole Place") on what had been indian land (Treaty of Dancing Rabbit).