Laotian people moved to establish new village in the area of Ban Ko Ban Kao. Later people from Bo Phloi moved to the area too. When the government officially established new town, thus they named Ban Lao Khwan.
The minor district (King Amphoe) Lao Khwan was created on October 1 1971, when the three tambon Lao Khwan, Nong Sano and Nong Pradu were split off from Phanom Thuan district.1 It was upgraded to a full district on September 8 1976.2
The district is subdivided into 7 subdistricts (tambon), which are further subdivided into 82 villages (muban). Lao Khwan and Nong Fai are two townships (thesaban tambon), each covering parts of the same-named tambon. There are further 7 Tambon administrative organizations (TAO).