Sandy Creek, a rural community near U.S. Highway 79 four miles west of Milano in southeastern Milam County, was named after a nearby stream. In 1869 the Sandy Creek Baptist Church acquired land in the José Leal survey. Sandy Creek became a voting precinct in 1892, and in 1903 the community had a two-teacher school with sixty-two students. The school was consolidated with the Milano Independent School District in 1931. A church and a cemetery marked the location of Sandy Creek on the 1988 county highway map.
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