Grayson, the seat of Carter county, is located on the Little Sandy River. The area was settled very early in nineteenth century by salt makers. The community was originally known as the Crossroads, but was renamed Grayson in 1838 when it was made the seat of the new Carter county. It was named for the family of Colonel William Grayson, who owned considerable land in the area. A Little Sandy Salt Works post office was operating in the area by 1811, was renamed Little Sandy in 1821, and moved about a mile and renamed Grayson in 1840. The population of Grayson in 1990 was 3,510.