From Atlas of Madison County by J.A. Caldwell, Condit, Ohio (1875)
Eight miles east from London, on the Short Line Railroad, in the north part of Fairfield Township; was laid out since the completion of the Springfield and Columbus Railroad, and named after the Lilly Chapel (M.E.) church. It is a small place, but is improving rapidly.
In 1850 a Methodist church was erected on land owned by Wesley Lilly, in Fairfield township, and in consequence of this gift of a site to the church it was given the name of "Lilly Chapel." This church prospered and drew the early settlers from that part of the county, although the idea of making a settlement there was not then considered. In 1871 and 1872 the Short-Line railroad, from Springfield to Columbus, appeared in prospect, and in the latter year Thomas Durflinger opened a store at Lilly Chapel in anticipation of the railroad. He also hoped for a station to be established if the road should actually go through that place. In 1873 the railroad was completed, and, sure enough, a station was established and called Lilly Chapel.
The town was platted on August 28, 1871, by Henry Gilroy and Henry Lilly and the town was named Gilroy. But as the station and locality had previously been designated as Lilly Chapel, in consequence of the church erected there and bearing that name, and as, in 1873, Henry Lilly originated a petition for a postoffice under the name of Lilly Chapel, which was granted by the postoffice department on the establishing of a postal route over the railroad, the town has ever been known and recognized by the name of Lilly Chapel. The first postmaster, Thomas Horn, was succeeded by C. L. Bales, and he by George Leiter. Thomas Horn built the first house after the laying out of the town and engaged in the mercantile trade. He also was the first local agent of the railroad company. David Wright was the first blacksmith, he having opened a shop in a house erected by Henry Lilly. The first physician, Doctor Taggart, who located there in 1880, remained only a few months. In the spring of 1881, Doctor Schofield located there and was the neighborhood physician for many years.
Lilly Chapel began to grow and prosper, and, as its location was in an excellent farming district, it soon took on a very businesslike air. In 1885 it contained a population of two hundred inhabitants. There were three general stores, one grocery, two blacksmith shops, employing four workmen, with a wagon and buggy shop combined. There were two steam sawmills, one of which had two engines and did a large business furnishing the material for the manufacture of wagons and buggies. The largest business of that day was carried on by two grain elevators, one of which was built by Pringle Brothers in the fall of 1877 and the other by the "Farmers' Association," the latter of which was managed by J. C. Byers & Company, and both of which did an extensive business. In 1876, prior to the erection of these elevators, four farmers, Henry Lilly, John Horn, Thomas Horn and Thomas Gorby, erected a corn-sheller and elevator for a neighborhood convenience, for shelling and shipping corn. This proved so successful and beneficial in its operations that it resulted in the building of the above mentioned elevators. These elevators received grain from a large scope of country and were a great convenience and source of profit to that section of the county. In 1878 a large tile factory run by steam power was erected, and immediately began doing a large business, at that time probably being one of the best in Madison county.
Lilly Chapel is the railroad center for that section of the county, and since it is located in the midst of a rich and productive country, it is an excellent shipping point for all kinds of farm products. The population of the town at present numbers three hundred and seventy people. It has an up-to-date bank, the Farmers Bank, a lodge of the Independent Order of Odd Fellows, two churches, German Lutheran and Methodist Episcopal, and a second-grade high school. Bonds to the amount of forty thousand dollars were voted in the spring of 1915 for the erection of a new high school building, to be completed for the school year of 1916-17 and to be one of the most modern and up-to-date school buildings in the county. M. C. Fitzgerald is the present postmaster and E. J. Belton, the railroad agent. The business interests of the town are represented by two general stores, owned, respectively, by Brough Ritchey and F. O. Morris; M. C. Fitzgerald, hardware store; W. H. Horn, confectionery; Farrar & Wood, elevator, which does an extensive business; Samuel Horn, garage, and J. W. Story, blacksmith.