Murphy was named after the first settler in the area, John W. Murphy, who settled the area in 1847.[2] J.W. Murphy also served as postmaster and as the master of the Buena Vista Grange. The post office was established in 1890.[3]
The community was in Buena Vista Township. Murphy never attracted many residents. The community's population was just 4 in 1902,[4] and was 5 in 1915.[5] Around this time, Murphy was considered a village.[3]
The community had a baseball diamond. The Murphy baseball team played against other teams in the Jasper County League.[2]
The Murphy post office closed on January 15, 1911. Thereafter, mail was routed though nearby Newton.[3]
The store at Murphy closed in 1937.[2] The population of Murphy was 27 in 1940.[6] The rail line was removed in 1950.[2]
