The Yalobusha County Courthouse was built in Water Valley in 1896. Yalobusha County has two judicial districts, with the second courthouse located in nearby Coffeeville. The Courthouse was designed by Walter Chamberlin. Originally, the Courthouse was a two-story brick structure with arched doorways and windows and a massive central clock tower. This original Courthouse looked very similar to the Holmes County Courthouse, built in roughly the same time frame.
in 1912, a fire destroyed much of the Courthouse. The tower and upper portions of the Courthouse were completely destroyed, but the bottom floors were salvaged. In 1913 the Courthouse was extensively restored by architect P. J. Krouse. A third story was added to the Courthouse, topped by a heavy cornice line with a frieze below. Above the main entrance was added a large window with Tuscan columns behind a balcony.
In 2004 the Courthouse received additional restoration work by architect Belinda Stewart.
The Courthouse was made a Mississippi Landmark in 1984.