Lipsko is located on two hills, divided by the Krępianka river. First mention about it comes from April 1589, when the village belonged to the Krępski family. In 1613 it was granted town rights, and quickly developed, due to the location along the “oxen road”, from Red Ruthenia to Greater Poland and Silesia. In 1614, Holy Trinity Church was built, founded by Lord Mikołaj Oleśnicki. In the 18th century Lipsko, located in Sandomierz Voivodeship belonged to several families - the Denhoffs, the Sanguszkos, and the Kochanowskis. After the Partitions of Poland, the town stagnated, with the population not more than 100. In 1868, as a punishment for participation of residents in the January Uprising, the Russians took away Lipsko’s town rights, turning it into a village (Lipsko did not become a town again until 1958). During World War II, German occupiers committed mass murders - on September 8, 1939, they burned alive 60 local Jews at a local synagogue.
On January 1, 1956, Lipsko became the seat of a county in Kielce Voivodeship. The town is home to a sports club Powiślanka, founded in 1964.