The survey of Milton began here in 1872, and a post office was established in 1873. Founder David Harshbarger later lived on this lot. The town was named for Milton Reece, the first postmaster and a large landholder in the vicinity. Milton was incorporated in 1876 with Captain J.R. Burke as its first mayor. Captain John Harshbarger occupied a log house 60 feet to the north and operated a grist mill to the southwest on Mud River.