Clay City is a town located in the township of Harrison in Clay County. Clay City is a part of Terre Haute Metropolitan Statistical Area. The residents live within an area of about 1.5 sq. kms., elevated by about 595 ft above the sea level. Some of the principal economic activities of the town are air conditioning servicing, auto sales and services, beverages and beer pubs, farm equipment sales and services, contractors and general order supplies and many more.