Pottsboro is located eight miles northwest of Sherman in north-central Grayson County. It was established by James A. Potts in 1876. He was a pioneer settler who donated the land. Pottsboro was a stop on the railroad and the community grew rapidly for the rest of the 1800s. The town was incorporated in 1880. The main source of revenue for the area was the cotton industry and gristmills. The population declined but was revived during the 1950s, spurred by the rapid expansion of nearby Denison. According to the 2010 census, the total population of Pottsboro was 2,160.
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