Founded by Houston and Great Northern Railroad investors as line was built through grant of Cyrus Lovelady, near communities of Nevil's Prairie, Pennington, and Weldon. Post office opened on Nov. 8, 1972. Town soon had livery, stables, blacksmith shop, and hotels, prospering as market and shipping point. By 1876 day school and Sunday school were held in a log house. A two-story structure was shared 1881-88 by Baptists and Lovelady Lodge No. 539, A.F.&A.M. Churches of other faiths were built later. The town, incorporated in 1927, is now center for ranching, pulpwood production.