Republic of Texas President Sam Houston granted two tracts of land to Charles F. Mercer on which to settle families in January 1844. Included in Mercer's colony were 6,500 square miles of land around this site. Among the earliest settlers here were members of the Concord Missionary Baptist Church, organized in August 1844 by the Reverend Benjamin Watson on a site that later became the Shady Grove Cemetery. A log structure soon was erected to serve as both church and school. The Greenville Post Office, which probably served Shady Grove, was established in 1847. The Rev. Mr. Watson and James A. Burnett deeded one acre of land to the Concord church in 1852. Watson also is credited with building the first flour mill in Hunt County in 1849. In the final days of the Civil War, James S. and Elizabeth Alexander settled in the community with their family. They gave the land for a new schoolhouse. James Burnett voted to name it "Alexander" for its benefactors, but others preferred the name Shady Grove for the number of large shade trees nearby. The community took on the school's name. The Alexanders also built a cotton gin, corn mill and blacksmith shop. A post office, store and Watson's flour mill completed the business section of the village. Shady Grove Methodist Church was built in 1885 with the Rev. W. S. May as pastor. Shady Grove Baptist Church was organized in 1888. The Shady Grove schoolhouse was closed in 1918 when the area was consolidated with Moore's Prairie schools. The Baptist church remained active in 1999. The story of Shady Grove community is a vital part of the history of Hunt County. (1999)