Judge James G. Thompson and Mr. James Archer Potts both owned large ranches at the future site of Pottsboro, before its inception. Pottsboro was established in 1876 by James A. Potts, a pioneer settler who donated land for a town and a right-of-way so that the Missouri–Kansas–Texas Railroad would extend its tracks westward from Denison to his settlement. The community, no doubt aided by its status as a stop on the railroad, grew rapidly for the rest of the 1800s. It incorporated in 1880 with the name "Pottsborough", and by 1885 its population had reached 200 and it supported a cotton gin, several gristmills, and a number of churches. Pottsboro suffered devastating fires which destroyed a great deal of the business section of the town: 1890, 1902, 1923 and 1924. Father-in-law of J.A. Potts, Judge James G. Thompson, applied for a post office in 1891, when they responded, the "ugh" was dropped from the name by the federal government and the town's name finally became "Pottsboro." A post office opened there in 1891. The population reached 454 in 1920 and 500 in 1925. By that time the community was served by some 25 businesses, including a bank, and by two schools with a combined enrollment of 300 students. Pottsboro declined to a population of 358 by 1936 and 312 by the mid-1940s. It then grew to 383 by 1957. The number of businesses had fallen to twelve by 1948, though by the late 1950s it was back up to more than twenty. The town began to grow again during the 1950s, perhaps spurred by the rapid expansion of nearby Denison. By 1967 Pottsboro reported thirty businesses and a population of 750, and by 1990 its population was 1,177. The population grew to 1,579 in 2000.
Demographics
As of the census of 2000, there were 1,579 people, 586 households, and 454 families residing in the town. The population density was 554.3 people per square mile. There were 620 housing units at an average density of 217.6 per square mile. There were 586 households out of which 43.5% had children under the age of 18 living with them, 57.3% were married couplesliving together, 16.0% had a female householder with no husband present, and 22.5% were non-families. 19.6% of all households were made up of individuals and 9.0% had someone living alone who was 65 years of age or older. The average household size was 2.69 and the average family size was 3.07. In the town, the population was spread out with 31.4% under the age of 18, 6.6% from 18 to 24, 31.0% from 25 to 44, 21.6% from 45 to 64, and 9.4% who were 65 years of age or older. The median age was 35 years. For every 100 females, there were 90.9 males. For every 100 females age 18 and over, there were 85.1 males. The median income for a household in the town was $43,977, and the median income for a family was $49,643. Males had a median income of $35,441 versus $24,886 for females. The per capita income for the town was $16,357. About 6.9% of families and 8.2% of the population were below the poverty line, including 10.7% of those under age 18 and 10.4% of those age 65 or over.
