Caddo Mills is at the intersection of the state highway in Texas. The earliest inhabitants of this area were the Caddo Indians who camped near Caddo Creek banks in the 1850s. Henry King and I. T. Johnson constructed a gristmill in the 1870s a mile on the West of the current town location. Citizens in this area labelled the community as Caddo Mills after King's and Johnson's gristmill. A post office opened in 1879. In the early 1880s, this area established a school and churches. The growth of this place was tremendous as the Missouri, Kansas and Texas rail tracks reached this place, making it a depot. Caddo Mills’ incorporation was done in the early 1940s.
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