William Murphy and his wife Dorothy Hudiberg Murphy moved from Morgan County, Indiana, to Collin County in the 1850's, first buying land near Dublin and later in the Maxwell Settlement. After the Civil War, local residents sold lots to create a town between FM544, Murphy Road, and Maxwell Creek called Decatur, but the venture failed because the railroad bypassed the community. When a post office was sought in 1884, the name Decatur was already in use, so the town became Maxwell. The railroad finally reached Maxwell in 1888, and the William Murphy family donated land and right-of-way for the depot. The depot was named Murphy, and the community then took the name Murphy. In its early days, the area was sparsely settled, with high native grass and abundant wild game, and William Murphy was known as a great hunter who helped feed his growing family of five boys and six girls with rabbits, wild turkey, and bears. In later years, William, known as Grandpa Murphy, was an elder and member of the Christian church for nearly half a century and was remembered as a congenial, industrious, and patriotic democrat.