The area was first settled in the early 1800s, and in 1840 Willie Magee built a grist mill on Little Goodwater Creek inside the present city limits. The community grew and in 1900 was incorporated as the Village of Magee. Its original business district just off U.S. Highway 49 contains several historic buildings, including the Magee Community House, home of the Lamplighter Community Theater, and the McAlpin House and Gardens, a preserved early twentieth century Victorian house and garden used for private and public functions. Today Magee values its historical and cultural heritage while serving as one of the most significant towns in the heart of the Piney Woods Region, the largest town in Simpson County, the county's retail and banking center, and the site of its only municipal airport. Much of the business district lies along U.S. Highway 49, the main north-south route through Mississippi to the Gulf Coast, and Magee Hospital has grown into a major regional medical center. Located between Jackson and Hattiesburg, Magee also has a large and diverse retail community, modern hotel facilities, varied cuisine, and access to recreation at Simpson Legion Fishing Lake to the north and the Okatoma Creek recreational area in neighboring Covington County to the south.