Poolville grew up around a natural spring-fed pool in the Clear Fork of the Trinity River in Parker County. Located one-half mile northeast of the present Poolville Town Square, the pool was a well-known watering place for cattle herds on the way to market, and gradually a settlement developed around it. About 1870, a saloon and a store owned by Jim Taylor gave residents a place to shop, trade, and visit, while M.L. Scott operated a sawmill on the east end of the pool. About 1879, A.H. "Major" Dunn donated land for a townsite, leading to business and residential growth. A log farmhouse near the pool had served as the community's first school, but after 1879 a building in the new townsite was erected for school and church purposes. Early 20th century business development included the first bank, organized in 1905, as well as two hotels, two blacksmith shops, a post office, saddle and harness shop, wagon yard, telephone office, and a cotton gin. About 1910, The Poolville Searchlight began publication, and homes, churches, and schools completed the community.