Settlement of the community began in the early 1880s. It was named for L. L. Keeter, a Baptist minister who owned a quarter section of land just north of the town.
A post office branch was established in Keeter in 1883. Within a decade the community had four cotton gins, a general store, and an elementary school. As cotton production decreased in the early 1900s, so did the population. Postal service was discontinued in 1904.