Nicholson School was built originally in 1891 as Montgomery School. In 1953 a new addition was constructed, and in 1961a new addition replaced the original building. In 1962 the school was officially renamed for Grace M. Nicholson who began teaching at the school in 1902 and was principal from 1915 to 1949. Nicholson, a graduate of West High School, used her personal funds to start a school library in 1911 and was active in establishing the first kindergarten in 1915. She also helped organize the first Montgomery School PTA after World War One. It was stated at the renaming ceremony, at which Nicholson spoke, that the secret to her success as a teacher was respecting each of her pupils as individuals.