The town of Taylorsport is located along River Road (KY Route 8), which follows Boone County's northern border. Along with neighboring Constance, it lies on a narrow strip of land at the base of a steep bluff in the Taylorsport Precinct.
The village grew up at the mouth of Elijah Creek in the early 19th century and became a post office by 1846. Thomas D. Foulkes founded a warehouse and ferry crossing there in 1827, and in 1836 General James Taylor of Campbell County platted a town called Taylorsville, later Taylorsport.
Unlike most Boone County towns, whose growth typically was organic or informal, Taylorsport had a geometrical grid plan with symmetrical blocks bisected by alleys. By 1883, the streets were dotted with houses. One of the community landmarks was the Taylorsport Methodist Episcopal Church, later the Taylorsport Community Church, built in 1863.
Many buildings were lost in repeated floods. Rising river levels resulting from dam construction claimed Water Street, a row of houses and the town's first graveyard.