In 1829, three commissioners, including John B. Peyton, were appointed by U.S. President Andrew Jackson to find a place near the center of Hinds County for the county seat. The current location of Raymond is a ridge about a mile from the center of the county, and was selected because the actual center was low and subject to flooding. The town of Raymond received its charter from the Mississippilegislature on December 15, 1830. Because of its status as a seat of justice and its proximity to the Natchez Trace, Raymond developed quickly into a prosperous small town whose prosperity and small size have continued to this day. In the late 1840s, Cooper's Well, a property near Raymond with a well that provided sulphured water, was developed into a resort for those seeking the perceived health benefits from its ingestion. Construction of a new county courthouse was begun at the center of the town square in 1857 and completed in 1859; the work was largely done by enslaved African Americans. The courthouse is still in use as a secondary location of county legal matters. The Raymond courthouse is considered by many to be a prime example of southern Greek Revival architecture. The Battle of Raymond was fought by Confederate and Union soldiers near Raymond on May 12, 1863 as part of General Ulysses S. Grant's Vicksburg Campaign during the Civil War. Four days later, the pivotal Battle of Champion Hill was won by Grant's troops and sealed the fate of Vicksburg. Grant stayed at Waverly, the plantation of John B. Peyton, and Union soldiers used St. Mark's Episcopal Church as a hospital. Blood stains can still be seen on the church's floor from that period. Construction of a water tower was begun in 1903 in the center of the town square. It and the courthouse are landmarks for the town. A small agricultural high school was opened in 1917; it developed as Hinds Community College, which has several sites and the largest student body of any college in the state.
As of the 2010 United States Census, there were 1,933 people living in the city. The racial makeup of the city was 53.3% Black, 43.9% White, 0.2% Native American, 0.4% Asian, 0.1% Pacific Islander and 0.8% from two or more races. 1.2% were Hispanic or Latino of any race. As of the census of 2000, there were 1,664 people, 469 households, and 317 families living in the city. The population density was 562.1 people per square mile. There were 498 housing units at an average density of 168.2 per square mile. The racial makeup of the city was 57.93% White, 41.17% African American, 0.06% Native American, 0.42% Asian, and 0.42% from two or more races. Hispanic or Latino of any race were 0.96% of the population. There were 469 households out of which 28.6% had children under the age of 18 living with them, 43.1% were married couples living together, 20.7% had a female householder with no husband present, and 32.4% were non-families. 29.6% of all households were made up of individuals and 11.7% had someone living alone who was 65 years of age or older. The average household size was 2.32 and the average family size was 2.89. In the city, the population was spread out with 15.4% under the age of 18, 40.3% from 18 to 24, 17.2% from 25 to 44, 15.4% from 45 to 64, and 11.7% who were 65 years of age or older. The median age was 22 years. For every 100 females, there were 119.8 males. For every 100 females age 18 and over, there were 123.5 males. The median income for a household in the city was $36,667, and the median income for a family was $42,639. Males had a median income of $31,106 versus $21,953 for females. The per capita income for the city was $12,615. About 17.8% of families and 21.6% of the population were below the poverty line, including 39.4% of those under age 18 and 9.6% of those age 65 or over.