In February of 1843, the state of Indiana, even though ​nearly bankrupt, recognized its responsibility to educate ​the Deaf residents by levying a tax of two mills (1/100) of ​each hundred dollars worth of property. Money ​generated from this tax was appropriated for a school for ​Deaf children. The state also rewarded the efforts of ​James McClean, a Deaf man from New York, with a ​payment of $200 in recognition of his attempt to establish ​a school in Parke County, Indiana. While his efforts lasted ​only a year, they served to draw the attention of the ​General Assembly to the need for education of Deaf ​children in Indiana.

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William Willard, a Deaf man teaching at Ohio School for ​the Deaf in Columbus, traveled to Indianapolis in May ​1843 and presented himself with his credentials to the ​General Assembly proposing the establishment of a ​school for Deaf children in Indiana. On May 30, 1843, the ​General Assembly enacted a resolution endorsing William ​Willard's interest in opening schools for the Deaf.

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Willard, a graduate of the American School for the Deaf in ​Hartford, Connecticut, had been a student of the great ​Laurent Clerc, "the Father of Deaf Education" in America. ​His wife, Eliza Young Willard, was an alumnus of the Ohio ​School for the Deaf. Together, they advertised throughout ​the state of Indiana for potential students. Willard ​traveled the state on horseback that summer ​demonstrating his methods and recruiting students for ​the school On October 1, 1843, the Willard School opened ​with twelve pupils. William and Eliza both served as ​instructors with Willard being responsible for the boys' ​general care and his wife responsible for the girls' general ​care.

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The school prospered and in December of that same ​year, the state passed a law that established the Willard ​school as a state institution. Willard was appointed ​principal of this school which, after a law passed in ​January 1846, became the sixth state school for the Deaf ​in the nation and the first state school to provide free ​education to Deaf children. In 1850, after being located in ​three different rented quarters in the downtown area of ​Indianapolis, the state built a spacious new school east of ​the city on the National Road.

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The Indiana School for the Deaf, at that time named the ​Indiana Asylum for the Education of the Deaf and Dumb, ​remained at this location on the corn of State and ​Washington Streets for many years. Willard continued as ​a teacher at the school until his retirement in 1860. Across ​the street from the school, Willard had a beautiful Greek ​Revival home built. There, he and his family resided in ​what was considered one of the finest homes in ​Indianapolis. After much wear and decay on the State ​Street campus, the state approved the construction of a ​new campus for the school on East 42nd Street on the ​north side of Indianapolis.

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The construction and opening of this campus was ​delayed from 1907 until 1911 due to the coat overruns ​and faulty construction. Much public debate was held ​about the cost of such magnificent buildings of ​monumental stature that became the present day ​campus of the Indiana School for the Deaf. Located on 80 ​acres in a beautiful campus setting, the school's main ​buildings are registered as historic landmarks. The ​Indiana School for the Deaf is a fully accredited school ​and a national resource center. It is recognized nationally ​for its leadership in education, its advocacy of American ​Sign Language and being the first state Deaf school to ​adopt a Bilingual Deaf Education.