ARNOLDSBURG PROMOTED AS GREAT FOR SMALL TOWN LIFE IN 1920 (07/14/2024) Arnoldsburg was brought to life as a small town in 1920 when an auction sale sold off a large number of lots, on which houses were built. The main drag was paved (US 33-119), a selling point, with a number of businesses coming and going, everything from general stores and service stations to a funeral home and restaurants, hitting its hey-day in the 1940s.