Castine was platted in 1832 and replatted in the following year. Its location was chosen because it lay at the intersection of the road between Greenville and Eaton with the road between the communities of Miami County, Ohio and New Garden, Indiana. For its first few decades, the village (then known as "New Castine") grew and prospered, but the building of the Little Miami Railroad through West Manchester, to the south, retarded Castine's progress. Revival came with the construction of the Cincinnati Northern Railroad in 1894.
