Ovalo is situated at the intersection of Farm Road 614 and U.S. Highway 83, on the Abilene and Southern Railway in southeastern Taylor County, Texas. This unincorporated community is part of the Abilene, Texas Metropolitan Statistical Area and also has a post office, with the ZIP code of 79541. With an oval-shaped valley which was also an old camping place for buffalo hunters and a stop for trail drivers going through Buffalo Gap, The town was named for the Spanish word for oval. Also, the Abilene and Southern Railway Company, which laid tracks near Ovalo in May 1909, owned 50% of the Ovalo townsite property, and railroad men Col. Morgan Jones, Percy Jones, D. T. Bomar, and John W. Broad each owned 1% of the town. It reached a population of 225 in 2000.
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