Settlement between the forks of Big and Little Cypress creeks began in the 1830s, but notable growth came only after a railroad arrived in 1891. The railroad was central to a venture financed by John H. Inman, organized by Edwin J. Fry, and carried out by brothers Robert H. and James W. Harle to exploit the area's virgin forests. Organized as the Hope Lumber Company, the enterprise built a depot and large commissary, installed a band sawmill, and extended a tram road into the Eagle Creek area. The nearby village of Grady could not compete with the Harles' well-stocked store and dance hall and soon declined, and its post office, renamed Harleton after the Harle brothers, was moved to the Harle store. Harleton's economy boomed as timber production stimulated increased farm activity, and local merchants such as D.C. Webb and Son, Dreyfus-Little Mercantile Co., J.P. Craver and Son, and R.W. Taylor General Merchandise expanded their stocks to meet growing demand. By the late 1890s, however, Hope Lumber Company had processed the area's available timber and closed its mill. The railroad later joined with the Marshall & East Texas Railroad, and Harleton continued with support from agriculture and other timber operations in the area.