The area was originally settled by the Cobb family and a mill was built by William Jones for the family. Around 1852 the mill was acquired by John or William Lusby. There was a post office that operated in Lusby's Mill from 1852 to 1904 and the town was incorporated in 1869. During the Civil War a Confederate training camp, Camp Humphrey was here.[1] One of the oldest houses in town is the Gunboat House, which received its name during the Civil War. There was a distillery that was said to produce “fine quality of pure old copper distilled whiskey” which closed in 1897.[2] In 1871, the Lusby's Mill Bridge, a 140-foot covered bridge, was built, but was destroyed by fire in 1927.[3] The town had a population of 81 as of the 1880 census.[4] Margaret Hammon donated the land for the first school in town, and the Lusby Central High School operated until 1934. After a bypass road was constructed, business activity diminished in the settlement, and it is no longer incorporated.[1]