Grayson is a city in Carter County, Kentucky, United States, along the Little Sandy River. The population was 3,877 at the 2000 census. It is the county seat of Carter County. Since Interstate 64 and the AA Highway both converge in Grayson, the northern part of town has an abundance of truck stops and fast-food establishments. Grayson's largest employer is Smithfield Foods, formerly known as Cooks. After the American Revolutionary War, Colonel William Grayson, aide-de-camp to George Washington, received a 70,000 acres (280 km2) tract of land for his service during the war from the state of Virginia. By 1838, a small portion of this tract was set aside for the development of a town which was to be named for Colonel Grayson. Although Grayson had only five streets and eighty lots, it was established as a city on February 6, 1844. On February 22, 1860, Grayson was recognized as an incorporated city by the state of Kentucky.