Lometa began after the Gulf, Colorado and Santa Fe Railway extended its tracks northwest from Temple in 1885 and chose a site in open ranch land for its first station west of Lampasas. Frank Longfield conveyed right-of-way in June 1885, the railway bought another 200 acres the following month, and a small depot was built. The new town was platted in May 1886 and named Montvale for the area's hills and valleys, but because Texas already had a Montvale post office, the name was changed to Lometa, a variation of Lomita, Spanish for little mountain. Business opportunities near the railroad drew many residents from Senterfitt, and Lometa became a thriving trade center. By 1892, it had a cotton gin and grist mill, three churches, a school, telegraph service, and 200 people. Development of the GC&SF's Eden Branch and the Scholten Railroad brought prosperity and increased trade in the 1910s. Lometa incorporated in July 1919 with a municipal government led by a mayor and five aldermen. In 1939, the Lower Colorado River Authority provided efficient electrical service. The town became a major shipping point for cattle, wool, and mohair, and livestock and agriculture dominated the economy for decades. Its location on state and federal highways has continued the steady stream of trade and travel established by earlier roads and rail lines, and Lometa remains an active town with the annual Diamondback Jubilee, schools, churches, civic organizations, and a regional park enriching community life.