Fairburn was settled as early as 1830. In 1833, the town was founded as Cartersville, changing its name one year later to Berryville.  Fairburn was probably named for a township in the County of York, England. 

The jurisdiction of the town government was set within a 600-yard radius from the railroad depot, this land then being the two counties of Fayette and Campbell. This period also marked the beginning of the decline of Campbellton, population 1,200, also the County seat, whose leadership wanted no involvement with the railroad. After the legislature agreed to move county boundaries several miles to the east, Fairburn became the most desirable location for a new county seat. Campbell County administration abandoned the Campbellton Courthouse which was moved to temporary headquarters in Fairburn in 1870. A new county courthouse was built and occupied there in 1871. Many Campbellton residents moved away at that time.


By 1896, Fairburn was also regarded as a banking town. The Fairburn Banking Company was chartered in 1891, and two banks joined ranks and prospered.  In 1905, a telephone system was installed in Fairburn. The town installed electric lights in 1911.

By 1920, the population of Fairburn had reached 1,600. By the following decade, Fairburn would see a decline in population by nearly fifteen percent, due largely to a nationwide economic depression and a failing local agricultural economy. By 1925, Fairburn had a new charter, a mayor and council, and changed its status from a "town" to a "city." 

The Campbell County Historical Society is located in the Old Campbell County Courthouse on West Broad Street. The Courthouse is individually listed on the National Register of Historic Places as an institutional resource. The Old Campbell County Historical Society is an active well-organized, non-profit group that cares for the old courthouse and hosts scheduled tours and educational activities.

Over the past several years, the downtown area has undergone a revitalization process and the economy of the downtown is improving. Fairburn still retains its two train depots, both built in 1917 of red brick with tile roofs and wide, overhanging eaves. Rail service is no longer available in downtown Fairburn. The City has completed renovation of both the passenger and freight depots which are occupied by law offices and antiques shops, respectively. An award winning revitalization plan was prepared for the district in 1988 and is currently guiding implementation of improvements by the Downtown Development Authority.