Daviston, incorporated February 16, 1887, is believed to be the first incorporated rural town in Tallapoosa County. The first mayor was J.D. Dunn. Daviston was a natural evolution of the opening of Indian lands in 1832. Much of the Federal Horse Path was within Creek Indian lands in 1832. With construction of Chapman Road from West Point, Georgia to Ft. Williams, Alabama on the Coosa River, land areas opened up to white settlement.

Daviston flourished with improved roads and became a hub of migration. It had grist and saw mills, a blacksmith shop, buggy shop, coffin shop, general mercantile, public well, federal distillery, six saloons or inns, pharmacy, and doctors. The first land deed found was dated 1836 to S.W. Monk. The post office was established in 1853 with John Davis as the first postmaster. The story told over the years is that he used his own name for the town name. When he submitted the name to the government, due to poor penmanship or a mistake, "Davis Town" became Daviston and has since remained.

In 1883, Walker Allen and his twin, Walter, moved to Daviston. Walker Allen was elected principal of Daviston School. In 1884, a wooden two-story building was started on land given by J.T. Moncus to be called Daviston College. It became a high school around 1912. The building burned in 1923. Another building was built and burned before being used. A third building was constructed in 1923 and received accreditation that year. Lillie Thompson, who graduated in 1916, was the first graduate of Daviston High School.

The school closed in 1988. At the time of closing, it was the smallest school in Alabama with 120 K-12 students. Thirst-eight principals served from 1883-1988. For 105 years, Daviston School served as the center of the community. In 1998, a committee formed to initiate a Daviston School Reunion to be held annually in the center of the town on the second Saturday of November.