In 1904 James Patillo (J.P.) Smith platted streets here in a 10-acre wheat field and established the town of Hagerman. Named for railroad attorney James P. Hagerman, the town had 250 residents, a cotton gin, school, church, post office, railroad depot, and several businesses by 1910. It prospered and grew to include three churches and a three-teacher school, but in the 1920s residents and businesses began to abandon the area when it became known that the creation of Lake Texoma would completely inundate the town. Lake Texoma was created in 1943.