The 25-year-old Twilight star would play Bridget Sullivan, the Borden family's live-in maid, with the 40-year-old American Horror Story actress as the accused axe murderer.
Borden was tried and acquitted for the axe murders of her father and stepmother in 1892. Sullivan testified at the trial, and one theory about the crimes suggests she and Borden were lovers.
Bryce Kass will write the script, with Waste Land helmer Pieter Van Hees as director and Naomi Despres as producer. Sevigny was previously attached to a HBO miniseries about Borden from Tom Hanks that never materialized.
Stewart is best known for playing Bella Swan in the Twilight movies, and will next star in Equals with Nicholas Hoult. Sevigny portrays Alex Lowe on American Horror Story: Hotel, and is slated for Black Dog, Red Dog with James Franco.