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The Old City Jail served as the County Jail for Charleston from 1802 until 1939. The area that now houses the jail was set aside in 1680 for public use and included a hospital, asylum poor home and "workhouse" for runaway slaves. Workhouse is a little bit of a misnomer since slaves had been primarily labored to dying to pay for his or her crime. The unique Waverly Hills Sanatorium, a two-story structure with a capacity of simply 40 patients, was in-built 1910, but an outbreak of tuberculosis prompted Jefferson County to increase the ability in 1936. An abandoned hospital always feels a bit menacing, however Waverly Hills has a darker history than most. Thousands of people died at the sanatorium, as the infectious disease took its toll on Louisville and the surrounding counties in the first half of the twentieth century. Annually around Halloween, a haunted house is hosted at the previous sanatorium, and throughout the year the Waverly Hills Historical Society provides quite a lot of ghost tours. The so-known as "demise chute" is now a key attraction on any ghost tour of Waverly Hills, and paranormal investigators have claimed that the tunnel is haunted.

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