The town of Dawson grew out of Spring Hill, the oldest settlement in Navarro County, which Dr. George Washington Hill, a Republic of Texas Indian agent, started in 1838 as a trading post to improve relationships with the Indians. Britton Dawson, born in 1817, came to Texas and lived first in Jasper County before settling at Spring Hill in 1846 on land he received as bounty for his service in the Battle of San Jacinto. In 1847 he moved here and later built a large home that served as a stagecoach stop. In 1881 the Texas & St. Louis Railroad, later known as the Cotton Belt, came through on its route from Tyler to Waco. That year Dawson's sons, David E. and W.H., and their wives gave 100 acres for a townsite on the new railroad. Named for the Dawsons, the town grew rapidly as Spring Hill residents moved here for business prospects. The railroad quickly set up a boxcar depot, churches and schools were established, and many merchants and the Masonic Lodge relocated from Spring Hill, causing that community to decline while Dawson flourished.