Lexington is located in Dawson County (of which it is the county seat) 14 miles southwest of Cozad between Cozad and Elm Creek along Hwy 30 on the banks of the North Platte River near Gallagher Canyon State Recreation Area.
Called Plum Creek by the original settlers, Lexington began as an early frontier trading post in 1860 when the Daniel Freeman family settled along the Oregon Trail near the Platte River. The trading post was prosperous; although The Plum Creek Massacre took place August 7, 1864, in the extremely dangerous bluffs near town. The Freeman's were forced to flee to Fort Kearney and the trading post was destroyed. Fort Plum Creek was established near the ruins of the trading post later that same year. A cemetery is all that remains near the historic site today. The town was incorporated in 1874.
Johnson Lake, 9 miles south. There are plenty of informational and physical activities to be had in this picturesque location.