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. However, despite its name, the town has no historical, cultural or government ties to the Choctaw Nation of Oklahoma. The tribal headquarters and casino are located in the southeast part of the state in Durant, Oklahoma, and the Choctaw Capitol Building and annual Labor Day Festival are in Tuskahoma, Oklahoma.
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.
The town incorporated in April 1904. When Oklahoma became a state in 1907, the town had 230 residents, four churches, a school, a bank, a newspaper and telephone service. By 1909, the town had three gins. The population grew very little during the Great Depression.