The community began as Oldham near Bethel Church and school, then was renamed Starks' Switch when the International and Great Northern Railroad laid a sidetrack there in 1872 to serve Starks' sawmill two miles west. A Latexo post office opened in 1907 after the Louisiana Texas Orchard Company platted 3,000 acres of fruit land and a town at the site. Lumbering later stripped timber from the area, but permanent settlers grew fruit and cotton. About 1915, Latexo became the first Houston County school to teach agriculture. Ranches sprang up in the 1960s. Though unincorporated for a time, the town had a fire squad and other civic services. It incorporated in 1979, electing a mayor and aldermen, and later added street lights and signs, a new school in 1980, a city hall and fire station in 1984, and a post office in 1985.