Named for a flour mill built on the Bosque River in 1867, Valley Mills is located in southwestern Bosque County. In 1881, the railway was built a few miles south of the site. Due to this and a cyclone that hit the town, the residents moved nearer to the tracks. Valley Mills became a prosperous retail and trading center for Bosque and McLennan counties which lasted for three decades. Dairy farming and stock raising were the principal industries of the community. The effects of the Great Depression only reduced the population. According to the 2010 census, the total population was 1,203.
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