The town of Milam was first settled probably around 1828. Its original name was Red Bound but was shortly after renamed to honor Benjamin Rush Milam who was a famous man fighting in Texas Revolution. It became the county seat of Sabine County in 1836, but that changed when a number of residents wanted the county seat to be more central, so when a town of Hemphill was platted in 1858, it became the county seat. Milam is a CDP and is located beside Sabine River, and at the intersection of Highway 87 and Highway 21. The town has a population of 1,480 residents as of the 2010 census and is the largest city of the county.
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