Alabaster was named for its quality of lime rock and the lime industry. In 1925, Joseph E. Walker opened the first retail business. The Alabaster lime rock plant was established in 1929 by George L. Scott Sr. The railroad shipping point became known as "Scott Rock." By 1933, the village had grown and was referred to as "Alabaster-on the-Highway." The first post office in Alabaster opened in 1951 and the first bank opened in 1952. Alabaster was incorporated on February 23, 1953. In 1959, Shelby Memorial Hospital was established as the first hospital in Shelby County. The first shopping center opened in 1964 and 2005 was the beginning of the Colonial Promenade.
Siluria incorporated in 1954. It voted to merge with Alabaster in1971. The Siluria Cotton Mills, founded by T.C. Thompson, dates back to 1896. Before closing in May 1979, it was the county's largest one-location employer. The first post office was established in Siluria in 1872. In 1921,Thompson High School was built and became the second consolidated school in Shelby County.