The town was established in 1871 with the coming of the
Texas and New Orleans Railroad. It was named after Michael Butler, an Irish immigrant bricklayer who founded a
brick works on a
railway spur. The small community never expanded sufficiently to establish a post office. Population figures were not reported until the 1930s when there were 107 residents. This number reached 150 by the late 1940s and remained at this level for the next 20 years. In the mid-1980s, the settlement was still listed as a community. Butler still appears on county highway maps. ==Elgin-Butler Brick Company==