Owensville's first known business was Frank Owens, merchant, and Edward Luster, blacksmith. Legend has it that these two pitched horseshoes to determine the name of the new settlement in spring 1847.

There is one family story that has Edward Luster as the winner and deciding on the name "Owens Ville" over "Luster Ville" because he thought it sounded better.

Alternativly, a 1905 Argus article reports Frank Owen as the winner. No matter witch story is true, Owensville is the only town in the US named after an event involving horseshoes!