Okolona was not always part of the Louisville area. At one time, Okolona was a city unto itself. It was the result of a city merger that resulted in the city becoming a neighborhood. It was not Okolona city itself that made the decision to merge, but rather Jefferson County, of which Okolona was a part, made the decision. Consolidation of government was seen as a more efficient method of management for all cities and counties involved. Okolona benefits from further financial support from the merger as well as few government heads to deal with.