Incorporated March 1, 1996
— Mayor S. Earl Niven —
Creek Indians once owned and hunted the land where the City of Chelsea now stands. In 1813, Andrew Jackson and his army won millions of acres of Creek land from the Indians at the Battle of Horseshoe Bend, including the area where Chelsea is located. Soon afterward, white settlers began flocking into the area, and by the mid-1800s, several pioneer homesteads were located among the hill and hollows. When the railroad came through in 1908, people began moving closer to the tracks and the town of Chelsea, first called Melrose, was born. Early businesses included a drugstore, saw mill, grist mill, planer mill, cotton gin, blacksmith shop, barber shop, general stores and a post office. Prominent store owners included George Washington Weldon and brothers, C.W. and Frank P. Chesser.
Among the early settlers were the Blackerby, Chesser, Crane, Gilbert, Kendrick, Niven/Nivens, Quinn, Spearman and Weldon families. Although no Civil War Battles were fought in the immediate vicinity, many men from these and other Chelsea families served in the Confederate Army. Chelsea was incorporated in 1996 and had a population of 906. By 2008, under the leadership of the first mayor of Chelsea, S. Earl Niven, the city's population had grown to approximately 9,000 citizens. Within 10 years, the town grew to include retail shopping; restaurants; banks and credit unions; grocery stores; doctor, dentist veterinarian, optometrist and chiropractor offices; schools, and a 29-acre park with softball, football and soccer fields, a walking trail and playgrounds.