Stem was formerly served by the Tally Ho Post Office. Tally Ho - which was named after the traditional fox hunter call "Tally Ho!". Fox hunting was a popular sport in this area of Granville County in the late 18th and early 19th centuries. The Tally Ho Post Office was established around 1830 and located about one mile northeast of here.
The Tally Post Office was moved to Stem in 1889 and renamed. Stem, which was named after a local family, was incorporated in 1911.