Pennington was formerly knowns as Tyler's Prairie or Tyler, Texas before its name was changed in 1866. Its early community was established by Jose Martin Predo, AF Westall, and Daniel Daily (also spelled Dailey) in 1835 on a Mexican Land Grant. By 1859, Dailey was the sole owner of the land grant as a result of buying out his partner. In 1866, the land was plotted then solely in Trinity County and was named after Hill Pennington, the town's first merchant. It also became the county seat but due to decline in development with the fact that Pennington had no railroad, the county seat was moved to Groveton. Also, a post office was opened in 1883 with a zip code of 75856. It was incorporated in 1901 and unincorporated in 1904. This unincorporated community in Houston and Trinity counties in is located off U.S. Highway 287 near the Davy Crockett National Forest. A small portion of Pennington extended to Houston County in the 1990s. The population was 67 in 2000. Finally, the Groveton Independent School District Serves students on both the Houston and Trinity county sides of the community.
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