Fountain County was formed on April 1, 1826. Later that year, the county seat was established at Covington, and a two-story frame courthouse was built in 1827. The location of the county seat was a point of contention for some years, as Covington was not centrally located in the county. In 1831 an act was passed that called for the relocation of the county seat, but after further discussion it was decided that it should remain where it was. Eventually the coming of the railroads helped to alleviate the geographical concern. A brick courthouse was completed in 1833. The Carnegie Library of Covington, Covington Courthouse Square Historic District, Covington Residential Historic District, Fountain County Clerk's Building, Fountain County Courthouse, and William C.B. Sewell House are listed on the National Register of Historic Places.
Geography
Covington is located at . It lies in the west part of Fountain County along the Wabash River, where U.S. Route 136 crosses the river. Interstate 74 passes about to the south of the city. According to the 2010 census, Covington has a total area of, all land.
Demographics
As of the 2010 United States Census, there were 2,645 people, 1,120 households, and 712 families residing here. The population density was. There were 1,197 housing units at an average density of. The racial makeup was 97.6% white, 0.5% American Indian, 0.3% Asian, 0.2% black or African American, 0.4% from other races, and 1.1% from two or more races. Those of Hispanic or Latino origin made up 1.1% of the population. In terms of ancestry, 23.0% were German, 13.6% were Irish, 13.4% were American, and 12.9% were English. Of the 1,120 households, 28.5% had children under the age of 18 living with them, 48.8% were married couples living together, 11.3% had a female householder with no husband present, 36.4% were non-families, and 32.8% of all households were made up of individuals. The average household size was 2.25 and the average family size was 2.83. The median age was 44.0 years. The median income for a household was $47,545 and the median income for a family was $60,913. Males had a median income of $41,354 versus $33,551 for females. The per capita income for was $24,694. About 4.0% of families and 6.7% of the population were below the poverty line, including 12.1% of those under age 18 and 7.3% of those age 65 or over.
Education
The Covington Community School Corporation consists of one elementary school, one middle school, and one high school, all located within Covington. The town has a public library, a branch of the Covington-Veedersburg Public Library.
Contemporary life
The Covington Business Association sponsors the town's Apple Festival, which happens each autumn around the town square. The City of Covington maintains a robust park and trail system.