Originally established in 1895 to serve children on the pioneer Farrar family, Grady school eventually grew into a community rural school. The first school building, located on a hill overlooking the north bank of Red Oak Creek, was replaced in 1919 by a second building on the south side of the creek. Mrs. Simon Bowden Farrar named the school for Henry W. Grady, editor of the Atlanta Constitution newspaper. The Grady School continued to serve students in this area until the late 1920s. After it closed the students transferred to school in nearby communities.