The Railroad Gave Palestine a Second Downtown
When the International-Great Northern reached Palestine in 1872, it did more than add a depot. The railroad laid out land around the tracks as the Railroad Addition. Shops, offices, and businesses followed. People began calling the district New Town, while the older courthouse district became Old Town.
The bigger turn came in 1875. Palestine and Anderson County residents approved a $150,000 bond issue as a bonus for the railroad to place its machine shops and general offices in the city. The company employed more than 300 people. Over the same decade, Anderson County's population climbed from 9,229 to 17,395.
The tracks also changed how Palestine grew. The new business district took shape near the depot, apart from the courthouse hill. Homes and streets followed the pull of railroad jobs and trade. The two commercial districts slowly grew toward each other, but the Old Town and New Town names stayed.
That history explains why Palestine can feel like it has more than one center. The courthouse hill tells the county-seat story. The blocks near the tracks show how one railroad bargain pulled jobs, stores, and another downtown toward the depot.
Content last revised 2026-07-11