A pioneer community named Lookout developed in this area along the Lampasas River and near Lookout Mountain during the 1870s and 1880s, and Lookout School opened about one mile southeast in the late 1870s. This cemetery began in 1893 with the burial of Heinrich K. Pfluger, the infant son of Barnard and Maria Schmith Pfluger. In 1904 Civil War veteran and early settler W. M. Kemp and his wife Margaret donated land for cemetery purposes, and local tradition holds that they did so on the condition that grave sites remain available at no cost. In the early 1900s Merrill Creek School was established about two miles west. Lookout and Merrill schools closed in 1921, and a new school named Pecan Wells opened about one-half mile west of the cemetery; at that time the community and cemetery were renamed Pecan Wells. Pecan Wells School closed in 1944 when it merged with the nearby Pottsville School System. Maintained by an association of descendants of people buried there, the cemetery contains more than 200 graves, including those of veterans of conflicts from the Civil War to the Vietnam War.