This community was established as “Samples” on December 14, 1883, and then it was established as The Town of Hollywood on May 13, 1887. The town was incorporated on May 24, 1897, and held its first election June 8th of that year. J. C. Mungo was elected intendant and the following people became the first town council: E. K. Moon, T. H. Machen, G. W. Chapman, W. H. Harris, and M. L. Johnson.

In 1989, Hollywood, California, attempted to trademark the famous name. In 1994, 10 other towns named Hollywood successfully fought Hollywood, California’s attempt to trademark its name and force same-named communities to pay royalties to it. A key point was that Hollywood in Alabama was the first incorporated Hollywood in the nation, whereas the one in California did not incorporate until 1903, 6 years after Alabama. The mayor at that time, Mr. Truett Lankford, along with other leaders, attended a two-day conference held in California in a successful attempt to block the trademark. This is why you will see the words “We’re The Real Hollywood” on the water tower which overlooks the town.