Choctaw is the oldest chartered town in Oklahoma. Choctaw physically became a community in 1890, but was not given actual status as a town until 1893 when a territorial governor was appointed for Oklahoma. It officially celebrated its 100th anniversary in 1993. In 1950 Choctaw was in an agricultural area. It had a population of 355 in that year.
Before Choctaw was chartered, the area included a part of William McClure's 7C Ranch and was known for a trading post and a camping spot near a spring.
A community emerged on the east 80 acres (320,000 m2) of land John S. Muzzy claimed in the 1889 land run and received a postal designation in early 1890.