Early settlers in the new town were mostly pioneers from the surrounding communities, such as Old Evergreen and Shady Grove. The majority of these people were ethnically British Isles natives, but a sizable minority were Wendish families from the Serbin area.

Wide streets were a distinguishing characteristic of the town; the two main thoroughfares (Main and Austin Streets) were 100 feet (30 m) wide, and other streets were 80 feet (24 m) wide. The town's first church, established in 1871, was Methodist. J. D. Giddings Masonic Lodge, chartered in Evergreen in 1865, moved to Giddings, and early churches and a public school met in its building.

Giddings became the county seat when Lee County was established in 1874. Early businesses included the Granger store, a blacksmith shop and saloon, a millinery shop, a saddle and harness shop, and an oil mill. Brick buildings came in 1875. The courthouse built in 1878 burned and was replaced in 1899. Fletcher House, built in 1879 by August W. Schubert, was sold to the Missouri Synod of the Immanuel Lutheran Church in 1894 to house Concordia Lutheran College.

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