The community is named for Josephine Ross, who was the daughter of the first postmaster.[2] A post office operated under the name Josephine from 1881 to 1959.[3]
Raphael Semmes, who served as the captain of the commerce raiderCSS Alabama during the Civil War, had a summer home in Josephine.[4] In 1898, the McPherson family bought the Semmes property. They operated the Mexiwana Hotel on the site of the Semmes home until 1935. A school, which served grades 1–6, operated in Josephine from 1903 to 1917. The community was also home to a bakery before it moved to Foley.[5]
A small sand mound, built by Native Americans who lived in the area, is located near the site of the former Josephine post office.[6]Bamahenge, a full-scale fiberglass replica of Stonehenge, is located on the grounds of Barber Marina outside of Josephine.[7]