Established in 1886 by settlers hoping to benefit from the proposed Santa Fe Railroad in the Panhandle, Lipscomb quickly developed after a post office opened that year and the Lipscomb Town Company sold land for $3 an acre in 1887. Seven businesses began in the first month. When the county was organized in 1887, Lipscomb became the county seat and was named for A. S. Lipscomb, secretary of state in the Republic of Texas and a justice of the State Supreme Court. In 1887, a hotel from the undeveloped town of Dominion was moved there, the first courthouse was built, and in 1888 the first school, held in a church, had 25 pupils. A new courthouse was erected in 1916.