First named Williamsburg for James Williams, who came from Maryland and set up a trading post about 1805, the town was established by the legislature in 1847 as Monterey, named for a battle of the Mexican War, on land owned by George C. Branham. In the heyday of steamboats on the Kentucky River, they made regular stops at the town wharf for passengers and cargo. Monterey was also a large tobacco market, and showboats visited the town in summer.