In 1845, settler John Nevins built a sawmill in what later became the village of Lafayette. This mill was later passed down to new owners John Lambert, James Greene, and A. Brenaman, then Fred Notebahn. Notebahn added a grist mill.[2]
By 1856, Lafayette was listed as a town in N.H. Parker's Handbook of Iowa.[2] In 1871, a coal deposit was discovered near Lafayette; a mining company was established, but proved unprofitable, with the shafts flooded with water and the coal deposit "not exceeding an inch in thickness".[2]
The Lafayette post office was established in 1891.[3]
The community's population was 50 in 1890,[4] 53 in 1900,[5] and 52 in 1920.[6]
The Lafayette post office was discontinued in 1902.[3]
Lafayette is home to the Lafayette Christian Church and the Lafayette Salem Evangelical Church, the later of which celebrated its centennial around 2001.[8]