In 1821, Creek Indian land was ceded to Georgia, and Houston County was carved from the wilderness. The first settlers arrived soon after through the 1821 Land Lottery, many coming from coastal Georgia, the Carolinas, and Virginia. The rich sandy loam proved ideal for farming corn, wheat, potatoes, vegetables, and especially cotton. Proximity to the Ocmulgee River enabled cotton exports and imports of manufactured goods, fueling growth in the new county.

Maps from 1864 show the community here was called Graceville. After the Civil War, Houston County became one of the largest fruit-producing regions in the United States, with vast peach orchards. By 1888, the Georgia Southern and Florida Railroad ran through the county's southern section, and land was sold for a new town. The name Elko first appeared in 1889, and in 1891 the town incorporated with a mayor-council government. A railroad depot became the hub of daily life, connecting residents to Macon, Florida resorts, and markets beyond.

In 1892, the Jeter family deeded land for a Methodist church, which grew out of nearby Hickory Grove Church. The first small frame sanctuary was destroyed by lightning, but in 1910 members built a new brick church. When the congregation could not agree on its location, Pastor E.E. Gardner and Jere Dean Grace personally unloaded the shipment of bricks to ensure construction began.

By 1900, Elko had 500 residents, a community newspaper (The Elkonian), and a thriving economy. The Bank of Elko was established in 1905. However, tornadoes, fires, and the boll weevil plague of the 1920s dealt harsh blows. Cotton collapsed, and farmers turned to peaches for survival. Though Elko never regained its turn-of-the-century prosperity, its churches and cemetery preserve its heritage. Both Elko Methodist and Elko Baptist congregations remain active today—a testament to resilience in this small farming community.