Caddo Mills is a rural city in Hunt County, Texas located at the western edge of Northeast Texas. The population was 1,495 at the 2020 cens…Caddo Mills is a rural city in Hunt County, Texas located at the western edge of Northeast Texas. The population was 1,495 at the 2020 census, up from 1,338 at the 2010 census. Before settlers arrived, the area was the site of a Caddo campground. Pioneers arrived in the late 1850s. About twenty years later, I.T. Johnson and Henry King built a gristmill, and residents started referring to the community as Caddo Mills after the facility. On June 16, 1879, a post office opened. Around this time, the community had about 100 residents, 3 churches, and a school. In 1886, the Missouri, Kansas and Texas Railway built a line through the town, and the population increased to 500. In the 1890s and early 1900s, the town became home to a newspaper and a bank. The population swelled to 790 but began declining in the 1920s. Caddo Mills had 390 residents and 20 businesses when it was finally incorporated in the early 1940s.