Pease City was founded in 1880 by Benjamin E. Lower and John Wesley and his wife, the first settlers. Lower became the first postmaster in 1880, and Mrs. Wesley became the second in 1882. The place was named for the Pease River and for E.M. Pease, Texas Governor from 1853-57 and 1867-69. A second group of settlers was the family of W.T. Dunn. A stone post office and trading post served 3,500 square miles of sparsely settled country, with mail delivered by stage or horse. The post office was abolished in 1885 when Margaret became the seat of Hardeman County. In 1891 the site of old Pease City and Margaret became part of Foard County.