The town is situated along Anderson Creek, which empties into the Elk River near the Lauderdale-Limestone county border. Both the town and creek were named for Samuel Anderson, who built a gristmill along the creek in the early 19th century. The town was first settled around 1825 and was named Andersons Creek for the afore mentioned creek. The name was shortened to Anderson, and a post office was established in 1860. Anderson incorporated as a town in 1973.Foscue, Virginia. Place Names in Alabama. University: U of Alabama P, 1989.
