Located in an area of Johnson County's earliest settlement, Rio Vista was founded on the railroad in 1885. The townsite, which affords views of both Nolan River and Mustang Creek, was given the Spanish name for "River View." The post office established there in 1885 was discontinued in 1889 but reinstated in 1890. By 1896, the community had 175 residents, eight stores, a lumber yard, a steam gin, and a steam corn sheller, and its public school system began that year. Telephone lines were installed in the early years of the 20th century, when three passenger trains arrived daily at the depot. The thriving economy was shattered by a fire in 1914 that destroyed 24 buildings, hurting many businesses and slowing rebuilding. Cotton sustained the economy during that time, and dairy farming later became important. As the railroad had initiated growth during the 1880s, the building of State Highway 174 through town in the 1950s brought another boost to the economy, and from its beginnings as a railroad community Rio Vista has been an important part of Johnson County history.