St. Libory was founded May 16, 1878 by a group of German settlers from St. Libory, Illinois, who were seeking a better fortune in Nebraska.

At $4 per acre, ten acres were purchased from the Union Pacific Railroad for a Catholic parish, to be named St. Libory after the home church in Illinois.

In 1880 the town had a population of 30. By the early 1900s there were 29 businesses and two churches. A few original buildings still stand today, and the population has grown to 300.

The surrounding area is rich farmland and is well known for St. Libory Melons. Fruits, vegetables, melons and pumpkins are available at roadside stands throughout the season. The historic and beautiful Catholic church, visible from the highway, can be visited.