The town was incorporated on June 10th, 1872, and Mr. Lott helped the young village to get three railroads to run through town. Soon after, the city of Gibson became Gibson City. "City" was added to the town's official title because there was post office confusion between Gibson and Gilson, IL. One of the widest streets in Gibson City is named Lott Boulevard in Jonathan's honor.

The first school in Gibson City was located on Drummer Creek, two miles northwest of town. The Drummer Grove school district was formed before the City of Gibson in 1866. In 1872, the district disbanded the Drummer Creek school and used Union Hall on Sangamon Avenue in Gibson City for classes.

A school was built for $10,000 and opened on December 4th, 1874, at the northeast corner of Melvin and Third Streets. The school grounds took up half a block. As Gibson City grew, Third Street became Ninth Street. Eventually, the address where there was an active school on that block for over a century was 200 N. Melvin Street. The first high school class met on the upper floor of this building in 1876 and graduated a class of four students in 1880.

A small building was added to the grounds in 1882 and a larger addition was built in 1888. These structures were destroyed in a fire on January 10th, 1912. The bell that was in the tower at the school was fished out of the ashes and today is on a stand next to the entrance of the unit office on 17th Street.

A new grade school was built that year for $50,000 on the same site where the building still stands today. However, the current-day building never housed high school students, being a kindergarten through 8th grade facility until 1955. The 1912 Gibson City Grade School was closed at the end of the 1984-85 school year. It sat abandoned to vandals and pigeons until 1994 when a local developer bought the building and converted it into low-income senior citizen housing that thrives today.

The Drummer Township School District was officially formed in 1911. Fortunately for the school district, the new Drummer Township High School building was dedicated on October 27th, 1911 before the winter, 1912, elementary school fire. This school was located on the south-east corner of Church and 16th Streets and was built for $65,000. Initially, the 9th through 12th grade High School housed 120 students.

As with many smaller schools after World War II, thirteen rural schools in and around Gibson City held elections to form the Gibson City Community Unit School District #1 on July 3rd, 1948. With consolidation came the need for more facilities with the building of class rooms, and a shop north of the old Drummer Township High School building, now known as the Gibson City High School.

In October, 1955, a brand new Gibson City High School building was opened across Church Street to the west of the old Drummer High building on the grounds of the athletic field. Built to handle up to 550 students, initial enrollment was 296 students with a high enrollment in 1975 of just under 500.

The athletic field was moved just west of the new high school across Sangamon Avenue where it is still in use today. The former high school was converted into the Gibson City Junior High School, housing 5th through 8th grades. At this time the Melvin Street facility became a kindergarten through 4th grade building.

An addition to the south end of GCHS was completed in 1964 and included a separate shops building directly west of the school. At the same time, unit offices were moved from the high school building to the north end of the GCJHS building where the shops used to be housed.

At the end of the 1965-66 school year, the Foosland Grade School was closed and students were enrolled at the Gibson City Grade School. After the 1969-70 year, the Elliott Grade School was converted to a special education building until closing in the early 1980s. The Foosland school has been since torn down, after having been on the east side of town, empty and abandoned. The Elliott school became the Elliott Community Center until storm damage in the 1990's was too costly to repair and the building razed.

In 1974, stress cracks were found in the attic of the junior high building due to outer walls bowing outward, causing floors to seperate from the outer shell, thus making the building unstable. A new Gibson City Middle School housing 5th through 8th grade was built just south from the old school. A block of 16th street between Church Street and Lott Boulevard was closed for the new building.