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In 1814 a Scottish immigrant named John Craig purchased a half section of 320 acres (1.3 km²) of Green Township from Elias Boudinot. He built an inn and tavern on the Harrison Pike. In 1818 Craig laid out a village which he named after the Cheviot Hills in southern Scotland. He sold lots and growth began.
In 1863, Confederate General John Hunt Morgan led his Morgan's Raiders past Union lines through Kentucky, Indiana, and Ohio. One of the targets included Cheviot, where the town was devastated by fire and destruction from the rampaging soldiers on July 13 of that year.