South Third Street is one of the first residential areas in Chipley. Although Chipley began as a railroad town, it was and remains primarily an agricultural center. The district is notable for its array of late 19th- and 20th-century homes, which served as residences for many of Chipley's most prominent citizens. It began developing less than 10 years after Chipley was founded along the tracks of the P&A Railroad, which reached the town in 1882. The district appears today essentially as it has since the late 1930s.