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It is part of the Cincinnati-Middletown, OH-KY-IN Metropolitan Statistical Area. Walton was founded in 1815 by John Walton, a veteran of the War of 1812 and brother to Kentucky governor Samuel Powell Walton. The city was named for him. It became an important stop on the Underground Railroad due to its location between Covington and Cincinnati along what is now U.S Route 25 (Dixie Highway). A historical marker at Dixie Highway and Main Street commemorates this history; it reads: "In 1815 John Walton established a settlement here which served as a station on the underground railroad.