Layyah derives its name from a wild short stature shrub of fuel-wood
commonly known as Layyan (Tamarisk dieica). Since the area was first
covered by the shrubs (Layyan), this name was accorded by the local
population. The district name is also spelled as Leiah. Layyah was
given status of district on July 1, 1982, prior to that it was a
Tehsil of Muzaffargarh district.
The town was founded around 1550 by Kamal Khan, a Mirani Baloch and
a descendant of the founder of Dera Ghazi Khan, the town was taken
about 1610 from the Mirani rulers by the Jaskani Balochs, who held
it till 1787. After that year Abdun Nabi Sarai was appointed
governor by Timur Shah Durrani, but three years later it was
included' in the governorship of Muhammad Khan Sadozai; who
transferred his seat of government to Mankera.[3]
In 1794 Humayun Shah, the rival claimant to the throne of Kabul, was
captured near Leiah and brought into the town, where his eyes were
put out by order of Zaman Shah. Under the Sikh government the town
once more became the centre of administration for the neighboring
tract, and on the British occupation in 1849 it was for a time the
head-quarters of a.District. In 1861 however, the District was
broken up, and Leiah became a part of Dera Ismail Khan, but in 1901
was transferred to the new District of Mianwali. The, municipality
was created in 1875. The population according to the 1901 census was
7,546. The income during the ten years ending 1902-3 averaged
Rs.9,900,'and the expenditure Rs. 10,100. In 1903-4 the income was
Rs. 10,600, chiefly derived from octroi; and the expenditure was Rs.
10,600. The chief industry of Leiah at that was the manufacture of
blankets. The town contained a dispensary and a municipal
Anglo-vernacular middle school.