Beginning in 1881 with an endowment of a library in his home town of Dunfermline, Scotland, and culminating in 1917, steel magnate Andrew Carnegie donated 56 million dollars to endow 2,500 libraries worldwide. In the United States, 1,679 public libraries were built in 1,412 communities. Libraries were constructed in 47 states and the District of Columbia.

Webb City residents discussed the possibility of applying for a Carnegie grant for many years, but no decisive action was taken until 1910 when the Civic Improvement Association of Webb City, a women's organization devoted to the betterment of the city and the welfare of its citizens, adopted the cause. These intelligent, energetic ladies contacted the Carnegie Corporation of New York, which had charge of the distribution of grants, and obtained their promise of a donation of $25,000 with which to erect the building. The gift was given with the conditions that the city either purchase or otherwise obtain the building site and that the citizens levy a tax for the maintenance of the library.

The Civic Improvement Association set about to garner public support. On April 6, 1913, Webb City voters overwhelmingly approved a one mill library tax. The site on the corner of First and Liberty Streets was purchased with money donated by private citizens. One month later the $25,000 Carnegie Grant was approved. The Free Public Library of Webb City, Missouri, was created.

The building is constructed of native limestone boulders and trimmed with Carthage stone. Sand and gravel also came from the mines in and near Webb City. The architect was Grant C. Miller of the Chicago firm of Miller, Fullenwider and Dowling, who had planned and supervised the construction of over fifty libraries. Miller designed an impressive Richardsonian Romanesque structure reminiscent of a church. It employs arched windows accented by stained glass panels. A unique feature, an interior swinging door, is inlaid with stained glass. Arched windows frame each side of the door. The interior woodwork is warm red oak, and the original furnishings were also red oak.

The cost of the building, including furnishing, was $23,944.20. The architect's fee put the project cost at "just a trifle more" than $25,000. "It was conceded [sic] by competent judges to be the most commodious, beautiful, and best equipped library building in this part of the country for the amount of money invested. It is superior to many buildings costing much more money."

The library was officially dedicated on January 1, 1915.