In 1872, a town-site was plotted on the new Texas and Pacific Railroad, which was under construction. The original survey sited the railroad about one mile east of the present rail line, with the town-site situated two miles northeast of present day Atlanta on property owned by a Rev. Dodd. Rev. Dodd named the new town Atlanta after Atlanta, Georgia, former home of many early settlers to the area. A drug store, general mercantile and several homes were built.

As rail construction progressed toward Atlanta, the civil engineer for the T & P surveyed another route to avoid expensive grading required by the origianal route. The new route cut through the cornfields of the Captain P. R. Scott Farm. The new Atlanta was estsablished at a central point between Texarkana and Jefferson on 100 acres donated by Captain Scott. The first four streets were named for his children - Hiram, William, Buckner, and Louise.

The strong influence of Atlanta, Georgia did not end with the naming of Atlanta, Texas. Other towns in the area with names from the state of Georgia are Douglassville, DeKalb, Marietta, and Smyrna.