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The Texas legislature established Castro County in 1876. Between 1890 and 1900 Castro County slowly developed but remained a sparsely populated stock-farming and ranching region. Some settlers arrived in the nineties to claim land for agricultural or commercial uses. On March 4, 1890, the Bedford Town and Land Development Company was formed in Grayson County with H. G. Bedford as president. On May 27, the company, eager to establish a county seat for Castro County, bought a section of land near the center of the county, dug a well, built a water tower, and platted a town. The new town was called Dimmitt because of the close bond between H. G. Bedford and the Rev. W. C. Dimmitt, a partner in the venture.
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