Muldoon is located on a grant of land that was originally granted to Father Michael Muldoon in 1831. The town was platted in 1886 when the railroad arrived. Muldoon is also known for its “Muldoon blue” sandstone. Today Muldoon sits nearly forgotten in Fayette County. The remaining buildings left are two churches and a post office. During the early 1900s, the railroad formed a large portion of Muldoon's economy; however, ridership eventually dwindled and Muldoon's prominence as a rail depot faded. In the 1960s, Hurricane Carla severely damaged the old water tower which had served the steam locomotives. The first scene in the movie Michael was filmed in Muldoon.
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