Peggy is at the intersection of Farm Road 99 and an unnamed paved road twenty-seven miles southeast of Jourdanton in southeastern Atascosa County. It began in the early 1930s, when landowners H. R. Smith and John Mowinkle had several hundred laborers clear mesquite and brush for farm land. To serve the needs of the workers and area residents, C. E. and Clara Nichols built a store called Hollywood. A gin was built across the road. The community was called Hollywood for several years, but in the late 1930s a post office opened with the name Peggy, after a niece of John Mowinkle. In 1939 the town had a population of twenty-five and one business. In 1943 it had two businesses and twenty-five residents. The population rose to fifty by 1961, then decreased to twenty by 1968. In 1990 Peggy had a store with a post office, a farm machine shop, and twenty residents. The population was twenty-two in 2000.
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