 manchester is a 4th-class city in clay county, kentucky, in the united states. it is the seat of its county and the home of a minimum- and medium-security federal prison. the city's population was 1,255 at the 2010 census. ==history== the town was founded to be the seat of the newly formed clay co. in 1807 on a  parcel near the lower goose creek salt works. the county court stipulated that the town be named greenville in honor of the war-of-1812 general who gave the county its name.rennick, robert. kentucky pla
Cities_in_Kentucky County_seats_in_Kentucky Populated_places_established_in_1844