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In the 1840s, European settlers arrived in the area around Plano. More people moved to the area thanks to the establishment of a sawmill, gristmill, and store. After several suggestions for names were rejected, residents suggested Plano as a name to refer to the unvaried, sparsely populated terrain. The name was accepted by the post office.
Plano grew after the completion of the Houston and Central Texas Railway in 1872. It was incorporated in 1873. The population had risen to over 500 by 1874. The business district was destroyed by a fire in 1881. In the 1880s, Plano was rebuilt. Business flourished again. In 1881, Plano took over responsibility for the Plano Independent School District. This ended the days when it was only being managed by private schools.
