Originally a site known as Pond Grove, Otterbein, occupies mostly flat, open farm land on the eastern border of Benton County. Otterbein's first 60 lots were laid out by John Levering and his wife on October 25, 1872, with an addition by Mary A. Clancey on April 24, 1883. 

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William Otterbein Brown, the farmer and stock-dealer for whom the town was named, held the office of postmaster from 1872 until his death on February 18, 1879. Otterbein High School ran from 1910 to 1966, when the consolidated Benton Community School Corporation came into existence. The original gym and most of the building was lost to a fire in 1975.  Like many rural towns, Otterbein once had a thriving two Nickel Plate Road (New York, Chicago and St. Louis) railroad tracks and a depot until the nationalization of the railroads in the 1970s. The Ron Thompson Park, located at the corner of Main Street and 2nd Street sits on the lot where Denny’s Pharmacy resided until a fire destroyed it in 2007. Ron Thompson proudly served the Otterbein Community as the Pharmacist for 46 years.

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Otterbein's Public Library was built in 1934, a brick library of 24 x 32 feet with a basement and remained until 2004.

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Notable Natives of Otterbein :

Adam Kennedy, author, actor and painter

Neal Gordon Musser, professional baseball player

Richard E Atha, Otterbein HS grad, NBA player, member Indiana Basketball Hall of Fame

Donald E Williams, Otterbein HS grad, former NASA Astronaut