Located in southern Walker County, New Waverly was founded by the Houston and Great Northern Railroad Company after the Old Waverly denied to rant the railroad a right-of-way through their community. In 1870, the area was named Waverly Station which then became New Waverly. The local economy was based on cotton. The new town grew rapidly with sawmills and cotton gins. By 1914 the town shipped agricultural products and lumber. In 1952 New Waverly incorporated as a general-law city. A local school was consolidated with nearby Elmira and other schools to form the New Waverly Independent School District. Around that time the largest employer in the vicinity was Louisiana-Pacific, a large lumber-manufacturing company.
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