Hagerman was located halfway between Bonifay and Chipley. The community was named for C. W. Hagerman who moved to Washington County from Pensacola in 1894.
Hagerman was a sawmill community that survived perhaps 25 years. Hagerman made use of the canals and creeks to float logs to the millpond.
A post office was established at Hagerman on February 8, 1895 and was discontinued in 1902.