Custer City, on Ranch Road 2896 some ten miles northeast of Gainesville in northeastern Cooke County, was established in 1876 by Jim Jones, who built a cotton gin and a flour mill there. The settlement was originally called Centennial City because it was founded during the nation's centennial; it was later renamed to honor Gen. George Armstrong Custer. Its post office operated under the name Custer City from 1877 until 1902. The community grew relatively rapidly and by 1882 had a population of 300 and a cotton gin and flour mill, as well as a school, sawmill, blacksmith shop, store, and church. It declined almost as quickly as it had developed, and in 1892 had only twenty-five residents, two mills, a blacksmith, and a general store. In 1978 the community still had a church and scattered dwellings. The church was still shown on the 1986 county highway map.
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Centennial City is classified as a Town
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