Mercedes, Texas, nestled in the Rio Grande Valley, Hidalgo County, boasts a rich history dating back to the late 1770s. Located twenty-five miles east of McAllen on U.S. Highway 83, Mercedes Texas began as ranchland before evolving into a vibrant economic hub. Its story is one of land grants, ambitious developers, and the enduring spirit of Texan enterprise.
Originally part of the Llano Grande Spanish land grant issued to Juan José Ynojosa de Ballí in 1790, the area that is now Mercedes Texas was initially sparsely settled by ranchers. By the 1850s, the Anacuitas ranch, owned by Ramón and Manuel Cavazos, marked the location. The Cavazos family, believed to be heirs of Ynojosa de Ballí, later established the Fuste ranch by the early 1900s, further cementing their connection to the land that would become Mercedes Texas.
The transformation of this ranchland into a town began with Lon C. Hill, Jr., a visionary land promoter. Hill acquired 45,000 acres stretching from the Rio Grande, including the site of present-day Mercedes Texas. Recognizing the area’s potential, Hill undertook significant land clearing and canal construction, notably the Estarito Canal, setting the stage for development. On May 29, 1904, Hill established the Capisallo Town and Improvement Company, initially aiming to develop the town of Capisallo just east of what is now Mercedes Texas. He quickly renamed the burgeoning community Lonsboro before selling his company to the American Rio Grande Land and Irrigation Company. This new entity renamed the town Díaz. However, the name Díaz was not to last, and after several more name changes, the town finally settled on Mercedes Texas. The origin of the name “Mercedes” remains debated. Popular lore suggests it honored the wife of Mexican President Porfirio Díaz, though historical evidence supporting a wife named Mercedes is lacking. Regardless of its namesake, when Mercedes Texas became the first town on the Sam Fordyce Branch of the St. Louis, Brownsville and Mexico Railway on July 8, 1904, it earned the endearing nickname “Sweetheart of the Branch,” highlighting its promising future and strategic location.
To ensure the economic stability and aesthetic appeal of Mercedes Texas, the Rio Grande Company implemented strict building regulations in the nascent town. On Main Street and residential areas, business structures were mandated to be built from brick, stone, or concrete, with a minimum cost of $3,000. Residential units were required to cost no less than $2,000. Adding to the town’s unique character, the sale of alcoholic beverages was prohibited for the first fifteen years of Mercedes Texas’s existence, reflecting a commitment to a wholesome community environment.
The American Rio Grande Land and Irrigation Company actively promoted Mercedes Texas to attract settlers from the north through extensive publicity campaigns. They facilitated travel to the region by transporting prospective buyers via railroad and offering guided tours of the Rio Grande Valley, showcasing the area’s agricultural promise and appealing climate. Agriculture quickly took root in Mercedes Texas. Grape culture was introduced in 1907, followed by the large-scale production of citrus fruits and diverse truck crops, capitalizing on the fertile land and favorable growing conditions of South Texas. The year 1907 also marked the opening of the first hotel in Mercedes Texas, signaling the town’s growing infrastructure and welcoming spirit. By 1908, Mercedes Texas had rapidly grown to a population of 1,000 and boasted essential community features including a school, a lumberyard, a feed store, a livery stable, and its own weekly newspaper, the Enterprise, demonstrating its swift development and self-sufficiency. The establishment of the Hidalgo County Bank in Mercedes Texas in 1908 further solidified its economic foundation, amassing deposits totaling $100,000 by the end of the following year, indicating the town’s burgeoning prosperity. Mercedes Texas officially incorporated in 1909, a year also marked by a devastating flood that tested the resilience of the newly formed community. In 1911, the Mercedes Commercial Club was organized to actively promote the town and its opportunities. That same year, the Mercedes Public Library was founded, emphasizing the community’s commitment to education and civic enrichment. A new city charter was adopted in 1914, and by 1915, the population of Mercedes Texas was estimated to have reached 2,000, reflecting consistent growth and attraction.
During World War I, Mercedes Texas and the surrounding area played a significant role in military mobilization. Camp Mercedes and Camp Llano Grande, located just outside of town, became home to 15,000 soldiers, transforming the local landscape and economy. Amidst the patriotic fervor of wartime, the Mercedes City Council passed a controversial ordinance on April 15, 1918, prohibiting the use of German or any other enemy language in schools, public spaces, and businesses for the duration of the war. This ordinance reflected the heightened sensitivities and wartime anxieties of the era within Mercedes Texas. By 1925, Mercedes Texas had an estimated population of 3,414, continuing its steady growth trajectory. A further updated city charter was adopted in 1931, adapting to the evolving needs of the expanding town. The discovery of oil in the Mercedes field in 1935 marked another significant turning point for Mercedes Texas, fueling substantial population growth. By 1940, the population had surged to 7,624, as the oil industry brought new opportunities and residents to the area.
Post-World War II, Mercedes Texas continued to thrive, particularly in agriculture. The 1947–48 harvest season was exceptionally successful, with Mercedes Texas handling over 2,000 carloads of produce, solidifying its position as a key agricultural center in the Rio Grande Valley. On September 17, 1952, Mercedes and Weslaco businessmen collaborated to form the B&P Bridge Company, initiating the construction of a new international bridge at the Progreso bend of the Rio Grande. Construction began in the fall of 1952 and was completed by the fall of 1953, enhancing trade and connectivity for Mercedes Texas with Mexico. By 1952, Mercedes Texas boasted a population of 10,065 and 252 businesses, demonstrating its robust economic and community development. Throughout the 1960s, Mercedes Texas solidified its role as a marketing and processing hub for cotton, vegetables, and livestock. Diversifying its economy, other industries emerged, including meat packing, box and boot making, and farm-chemical manufacturing, adding to the town’s economic resilience. In 1961, the population of Mercedes Texas was recorded at 10,943. By 1970, the number of businesses had slightly decreased to 140, possibly reflecting economic shifts or consolidations. However, Mercedes Texas remained a vital center in the Rio Grande Valley. During the 1980s, Mercedes Texas gained recognition for its annual Rio Grande Valley Stock Show, attracting visitors and showcasing the region’s agricultural and livestock heritage. Furthermore, Mercedes Texas became renowned for its concentration of nationally acclaimed bootmakers, adding a unique cultural and artisanal dimension to the town. In 1980, the city’s population was 10,354, and by 1990, it had increased to 12,694, indicating renewed growth. By the year 2000, Mercedes Texas reported 377 businesses and a population of 13,649 residents, reflecting its continued evolution into the 21st century as a dynamic and historically rich town in South Texas. Mercedes Texas stands as a testament to the enduring spirit of community and the transformative power of vision and enterprise in the Rio Grande Valley.
