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Tradition has it that Lydia got its name from Captain O. D. Lee, whose plantation comprised most of the area around present day Lydia. A devout reader of the Bible, Captain Lee found in Acts 16:14 verses concerning a woman named Lydia, who was hospitable to Paul and Silas and helped them hold the first prayer meeting at a riverside. Captain Lee decided that the new Post Office building in the community should be named Lydia in her honor.

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