Capitola was on the old Menard road between State Highway 29 and the Llano River in northwestern Mason County. It was settled in the early 1890s. Its post office was established in 1894, and the postmistress, Sarah E. Jenkins, named the town Capitola, supposedly after one of the most popular novels of the nineteenth century, The Hidden Hand; or, Capitola the Madcap. The community had a population of twenty-five in 1896. In 1909 its post office was discontinued, and the community was gradually abandoned after the route of the road was changed.
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