The Merkel Area Historical Society met for the first time in February of 2001. They elected officers and set goals under the leadership of President Larry Gill. Those goals included the publishing of a Merkel area history book and plans to establish a museum. Volume One of Merkel Area History was published in 2002 with Pat and Larry Gill as editors. Then in 2005 Volume Two was published.

It was also in February of 2005 that the Merkel Historical Society purchased a 3,000 square foot building on Interstate 20 for a museum. The building was bought from Waymon and Johnnie Adcock who built the structure in 1978 for their Circle A Western Store. Workers immediately started building displays in the old building and used old barn wood from a building which they took down near Abilene. The group was approved as a non-profit 501(c)(3) organization and received no government grants or assistance.

The museum was given the name Area Historical Museum of Merkel and established historical preservation and education as goals. The museum preserves the history of the entire area including Noodle, Stith, Truby, Tye, Blair, Buffalo Gap, Abilene, Merkel, Trent, White Flat, Nubia and Eskota. The museum building was designated the Zella and Walter Clemmer Exhibit Hall and the grand opening was held in September 2005.

Historical members filled the museum in less than six months and took actions to expand. They purchased the entire city block on which the museum is located. This area was fenced for farm implements. The next step was the addition of a 5,000 square foot building named the Harroll Clemmer Exhibit Hall which opened in September 2006. This hall added a kitchen, meeting area, library, large restrooms and many museum displays to the museum. The third addition dubbed the Pat and Larry Gill Exhibit Hall opened in June 2008 and added an additional 5,000 square feet for a total museum display area of 13,000 square feet.