Although Preston developed as the largest community in the area for many years, several factors led to its decline. When new counties were created by the Texas Legislature, their
county seats were located near the center of the counties. After the Texas Legislature created Grayson County from
Fannin County, the county seat was designated near the center of the new county, at Sherman. As the county government developed, the focus of growth left Preston. The site of Sherman was situated east of the Preston Trail and caused travelers passing through the area from the north to the south to gravitate east of Preston.
Butterfield trail The
Butterfield Overland Mail stage route, between
St. Louis and
San Francisco, began operation in 1857. The line ran across the Indian Territory from
Fort Smith, Arkansas, to the Red River at Colbert's Ferry, a few miles east of Preston. The stage line had decided to bypass Preston as the traditional crossing on the Red River. Colbert's Ferry became a more popular crossing over the Red River as Sherman and
McKinney developed. In 1857, Sherman was very small, made up of only two or three small stores. Much of the brick and material came from older buildings at Preston. By 1871, 14 stage lines were operating through Sherman.
MK&T Railroad After the Civil War, the peace treaty between the United States and the Five Civilized Tribes allowed for a railroad to be built north and south across the Indian Territory. This railroad, the Missouri, Kansas and Texas, crossed the Red River near Colbert's Ferry to the east of Preston in 1871. By this time Preston had begun to decline and was largely abandoned. As other cities along the railroad's route prospered, Preston became a rural community.
20th century In the 20th century, Preston had a public school system, two churches, a
cotton gin, and a cemetery. In the 1930s, the town had about 20 residents. New Preston developed more centrally within the bend.
Lake Texoma The United States Congress authorized Lake Texoma's construction by the
Flood Control Act of 1938 approved June 28, 1938, (Public Law 75-791) for flood control and generation of
hydroelectric power. The lake's area submerged the Preston townsite. The
United States Army Corps of Engineers bought all the land in the area in the late 1930s for Lake Texoma. After the filling of Lake Texoma, only the cemetery was left from Preston; which was on high ground overlooking the town. The cemetery was expanded with a new section when Lake Texoma was created. Some of the existing graves that were to be under the lake were moved to the new section of the cemetery. Preston Point is the peninsula in Lake Texoma that was the high ground overlooking the town of Preston. An unincorporated community named Preston exists on this peninsula, consisting largely of campgrounds and recreational cabins. ==Demographics==