Lexington is located deep in the heart of Kentucky's Bluegrass region and occupies the entirety of Fayette County. Founded in 1775, when Kentucky was still a county in Virginia, the settlement was named in honor of the colonists' victory in the Battle of Lexington. Permanent settlement was delayed for four years due to the threat of Native American attacks, but after the construction of a fort in 1779, the area began to grow. The Virginia General Assembly established the town of Lexington in 1782. By the time Lexington was incorporated in 1831, it had already become a town of such opulence and culture that it had earned the nickname "the Athens of the West."

The city of Lexington is strictly zoned, with an urban area that's tightly contained to prevent it from spilling over onto the horse farms and famous expanses of bluegrass. Lexington adheres to a policy of smart growth, which means every effort is made to preserve the natural environment even in the midst of expansion. The downtown area is compact, transit-oriented, and pedestrian friendly, and every effort has been made to preserve and revitalize the city's many historic structures. Landmarks such as the Opera House and the Mary Todd Lincoln House have been meticulously maintained.