Taylorville was founded in 1908, and was named after a local farmer named Taylor.[5] A post office was established under the name Dresser in 1932, and remained in operation until it was discontinued in 1935.[6] Residents use the names Taylorville and Dresser interchangeably.[7]
Taylorville has historically had a reputation of being extremely poor and insular. A 1930s history of the village described it as “a breeding ground for all that was repugnant to American standards.”[8] Residents of Taylorville have recalled being bullied as children for being from the village. Residents do acknowledge that the village is extremely close-knit but also say they are simply independent and keep to themselves.[7][8]
Taylorville has declined in population in recent decades. The village is located in a floodplain and acquiring a permit to build a home in the village is difficult.[7] As of 2013, Vigo County officials were attempting to purchase properties in Taylorville in an effort to remove residents from flood-prone residences. This plan has been met with resistance from Taylorville residents.[8]
