Palace, twelve miles southeast of Canton in southeast Van Zandt County, had a post office temporarily as early as 1878 and continuously from 1881 to 1905. In 1885 area farmers shipped cotton, and the town had three steam saw and grist mills, several cotton gins, three churches, a school, two general stores, and a blacksmith shop. The population reached 300 in 1885, but dwindled to 100 by 1896. No population figures were available after 1900, and Palace did not appear on state highway maps.
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