Coffeeville is a town in and one of two county seats of Yalobusha County, Mississippi, United States. The population was 905 at the 2010 census. It is named after John Coffee, a planter and military leader. The minor American Civil War Battle of Coffeeville took place near here in December 1862. Water Valley, Mississippi, in the northeastern part of the county, is the second county seat and judicial district. Once a center of railroad shops, it is the largest city in the county.