The area that would become St. Matthews was first settled by European Americans in 1779, led by Col. James John Floyd of Virginia, who conducted a crucial survey of the Jefferson County area in 1774. Floyd acquired 2,000 acres of land through purchase and colonial veteran grants. Initially known as "Floyd's Station," this early settlement consisted of cabins and a stockade, reflecting the frontier lifestyle of the period. The community developed around the intersection of Breckenridge Lane, Shelbyville Road, and Westport Road, known by 1840 as "Gilman's Point" after local tavern owner Daniel Gilman. The name "St. Matthews" was adopted in 1850 with the establishment of St. Matthew's Episcopal Church and became official in 1851 when the local post office took on the name.

From Agricultural Hub to Suburban Center

During the early 19th century, St. Matthews was renowned for its plantations and earned the moniker "garden of the state" due to its fertile soil and favorable farming conditions. The area's economy thrived on labor-intensive crops like tobacco and hemp, with horse breeding also playing a significant role. In the early 20th century, St. Matthews became a major potato shipping center, second only to the St. Matthews Produce Exchange from 1910 to 1946. This agricultural prosperity began to shift in the early 20th century with the advent of urban transit and automobile traffic, leading to the subdivision and development of residential areas. The Ohio River flood of 1937 accelerated this transformation as families relocated from low-lying areas in Louisville to the higher ground of St. Matthews. The city was officially incorporated in 1950 to address infrastructure needs, including the development of a sewer system.