Prior to 1837, Montgomery was a trading post situated a mile north of the present site. Owen and Margaret Montgomery Shannon, colonists with Stephen F. Austin, had settled on their grant of land and traded with the Indians.
In July of 1837, an ad in the Telegraph and Texas Register advertised the sale of lots in the newly organized town of Montgomery. The article stated that a new county was expected to be created and Montgomery, from its central position, would be selected as the seat of justice. Montgomery remained the seat of government until 1889, when the records were moved to Conroe.
In its early days, Montgomery was the trade center for a large farming area, where stagecoach, railroad and telegraph lines crossed.
Civic and religious organizations came early to Montgomery, as well as the first school in 1839. In 1848, the City of Montgomery was incorporated, and in 1842 the first Protestant parsonage in Texas was built here. In the 1850’s, Montgomery experienced a building boom. Some of the fine homes built at that time remain today with descendants of the original owners or early owners occupying them.
The Civil War stopped all progress in Montgomery, but by 1900, numerous mercantile establishments were in business, as well as three cotton gins, railroads active with freight and passengers, five hotels and boarding houses, doctors, dentists, and lawyers. But later with the railroads by-passing the town and the county seat moving to Conroe, Montgomery reverted back to the little town it is today - quiet, peaceful, and rich in history.
In 1839 the simple but elegant design of Dr. Charles B. Stewart of Montgomery was chosen for the creation of the Lone Star flag. On May 30, 1997, the House of Representatives of the 75th Texas legislature officially commemorated Montgomery County as the Birthplace of the Texas flag.