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At the time of the formation of the District, the Indiana State Regional Areas were proposed for planning purposes. Region 7 included the five planning counties. Putnam County petitioned to join the District in 1973 and was formally accepted in 1974.
The district was incorporated in the State of Indiana on May 16, 1968. The area designed as the District in 1968 comprised of five counties: Clay, Parke, Sullivan, Vermillion, and Vigo. The City of Terre Haute was designated as the Economic Development Center, while Sullivan and Vermillion Counties served as designated Redevelopment Areas.