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Foley was named for its founder, John B. Foley of Chicago. As Foley was traveling to President McKinley's funeral in 1901, he met a railroad agent who told him of the area in South Baldwin County. Foley came down the following year, and he liked what he saw and bought up between 40,000 acres (160 km2) and 50,000 acres (200 km2) of land. He then returned to Chicago and formed the Magnolia Land Company. As he began to sell off acreage, he realized the need for a better way for the people to come to Foley. Foley used some of his own money to lay the rails so the train could come from Bay Minette. The first railroad station was built in 1905.