In 1837 James Farley donated half an acre of land for a log cabin school. It was originally referred to as the Farley school, and Johnson Farley was the first schoolmaster. In 1857, the log school was replaced by a frame schoolhouse. The school became known as the Blue School, not because it was located very near the Blue Woods and the Blue Woods Creek, but because the builder, Sammy Bales, painted it blue.

The Farley School was also the original meeting place for a Methodist congregation. That congregation built White Chapel Church in 1853.

In 1903 a two-room brick schoolhouse was built east of the Blue School that it replaced. Though it was a red brick building, it was still called Blue School. Four grades were taught in each room of the second Blue School until it closed in 1922. The building was remodeled in the 1950s and has been a residence ever since.