Centralia, one of the important towns of Nemaha county, is located 10 miles southwest of Seneca, the county seat, on the Missouri Pacific R. R. which runs through the southern part of the county east and west. It is also on the Vermillion river. It has banking facilities, a public library, a weekly newspaper (the Journal), telegraph and express offices, and an international money order postoffice with four rural routes. All the main lines of business activity are represented. The population in 1910 was 665.

A settlement known as Centralia was made in 1859 a mile north of the present town. J. W. Tuller erected a store in 1860 and shortly afterward a school house, a drug store and a hotel were constructed. These, with a law office and a blacksmith shop, comprised the town up to 1867. When the railroad came through the site was moved. The town company purchased 240 acres of land, half of which was given to the railroad for building a depot. The first building erected was a store by I. Stickel in 1867. Four other business buildings followed before 1871. In 1873 a $7,000 mill was built by John Ingram. The first school was taught in a frame building erected at a cost of $2,500, J. S. Stamm being the teacher. The first marriage occurred in 1860 between Albert Clark and Sara Mitchell. The town was incorporated as a city of the third class in 1882 and the first election held the same year.