John Loxley came to this area, previously known as Bennet, at the turn of the century (1900) to establish a lumber camp that included a commissary and a sawmill. A large number of men came with him, then stayed to settle and marry here. John Loxley is considered the founder of Loxley.

After the timber had been cut Mr. Loxley returned to Chicago. Real estate men tried to sell the land for $.25 an acre, but people declined rather than pay taxes on it.

The railroad was first opened on May 5, 1906. The only roads were the wagon roads to Bay Minette. The railroad was called the Fort Morgan Line, as it originally intended to go that far.

The only church in town was the Methodist Church, the Baptist Church having blown down in the 1916 hurricane. Everyone went to the Methodist Church. The Episcopal Church was considered “out in the woods” as it was located northwest of town.

The present post office was officially opened in 1906 by Octavia Sauer. She was the official postmistress and depot agent combined. The grammar school was built in 1925.

In 1920 the businesses in Loxley were an egg store, grocery store, two general merchandise stores, a train depot, drug store, telegraph office, land office, repair garage, post office, bank, hotel, butcher shop, orange packing shed, cement block plant, a blacksmith, a feed and lumber store. The main road was Highway 90; it was not paved then. Walter “Pop” Hammond had a grocery in the George Marinos building.

The Town of Loxley incorporated in March, 1957.