It was through the land development project of W.C. Johnson and George P. Pugh of Danville, Illinois that the town of Woodsboro, Texas was laid out along the St. Louis, Brownsville, and Mexico Railway in late 1906.
A post office was established in the Bonnie View Land Company Hotel in 1907, and soon after the town was named for Tobias D. Wood who had sold his Bonnie View ranch to Johnson and Pugh.
A public square was included in the official town plat of 1908 and it became the center of economic growth and civic enterprises that characterized the early development of Woodsboro.
The Woodsboro Commercial was founded in 1914. Among its more lasting contributions was a waterworks installed in the town square.
The town was finally incorporated in 1929 while the plaza (town square) remains a center for civic activities in Woodsboro.