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Clay County is a crossroads for historical events and routes from Hwy 18 and Hwy 71. In 1855, the first settlers discovered this fertile northwest Iowa terrain as a suitable place to establish their homes to fulfill their dreams. Clay County, officially organized in 1858, found the majority of its early settlers in the southwestern corner. In May 1860, Peterson was selected as the county seat. The rolling hills in the southern portion of Clay County, however made travel difficult for many. In 1866, the first settlers made their way to flat prairie area which is now known as Spencer. As more settlers followed this northern trek, it was petitioned and agreed to relocate the county seat to Spencer. In 1871, Spencer was officially settled as the county seat of Clay County. The courthouse, built in 1901, still stands today. Within only 30 years of existence Clay County was gifted to have 84 schools throughout the county and the population had blossomed to over 1,500. In 1859 George E. Spencer gave his name to the City of Spencer. In 1878, the first railroad was built through the black fertile prairie of Spencer and in less than a year the settlement grew from 300 people to a bustling town of 1,000. The Clay County Agriculture Society was organized in 1879 and was significant to the history of Spencer. In 1917, the Clay County Fair Association was formed and since that time it has grown to the greatest county fair in the world. The nine-day fair attracts more than a quarter of a million visitors. Growth resulted in spite of the disastrous Spencer fire in July 1931. Most of the business district went up in flames when a youngster dropped a burning sparkler into a box of fireworks. The keen civic spirit, predominant still, flourished as Spencer merchants rebuilt the business district into one of the most attractive in Iowa.
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