In 1899 F. E. Gideon (from Ohio) and W. P. Anderson (from Indiana) came to Southeast Missouri to see about investing in timber.  Happy with what they saw they purchased ground from Frank Noisworthy and land owned by the Himmelberger-Harrison Lumber Company.  They were originally going to build their mill in Clarkton or Malden but opposition from those communities led them to purchase their own land.

In 1900 a large circle mill was built which was used to create a large clearing for the construction of buildings, one of the first of which, was a hotel.  In 1901 two stores, a lumber company (Clarkton Lumber Company), and large charcoal plant were built.  This occurred the same year that Louis Houck built a railroad to the west of Gideon.  Two years later the Gideon and North Island railroad built a line from Malden to Gideon to haul lumber.  
 
In 1902, the Clarkton Lumber Company financed the community's first school.  The first doctor arrived in Gideon in 1903, his name was Dr. T. W. Cottrill.  In 1904, the first railroad depot and post office became a reality.  M. V. Mumma was the first postmaster.  Also in 1904, Otto Kochtitzky of Cape Girardeau donated seven acres of land for a park and larger school.  This is the present location of the school in Gideon today.  The first Baptist church was erected that year with Pastor Wright as the first leader.  

In 1907 the Clarkton Lumber Company was reorganized and named the Gideon-Anderson Lumber and Mercantile Company.  Gideon continued to grow throughout the first and second decades of the 20th century.  The town was officially incorporated in 1909.  In 1914 it became a fourth class city and R. B. Langley became its first mayor.  

​Three schools were built prior to WWI and by 1939 Gideon had 1500 students enrolled.