Grassy was named for the nearby Grassy Creek on which the community is located. The name for the creek derives from the lush sage grass which grows along the banks and as well as in the bed of the stream.
Located just outside Grassy are three campgrounds along the Castor River:
- State Historical Society of Missouri: Bollinger County Place Names, 1928-1945 http://shs.umsystem.edu/manuscripts/ramsay/ramsay_bollinger.html
- USA.com http://www.usa.com/cape-girardeau-jackson-mo-il-area.htm
- Arrowheadcampgrounds.com http://www.arrowheadcampgrounds.com/
- Bollinger County, Missouri Chamber of Commerce http://www.bollingercountychamber.com/recreation.asp
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