Sulphur Springs [sic] was named so because when the area was first settled, springs of sulfurous water were abundant.
Eli Bib, one of the first European-American settlers, ran a store from his cabin, selling staples, whiskey, persimmon beer, and slabs of ginger cake. In 1849, Dr. and Mrs. Davis moved into the area. Dr. Davis envisioned the spot as a future city. In 1850, the residents organized the area's first church, the Methodist Episcopal. Construction of the church was completed in 1853. In 1852, the Presbyterian Church was organized. At that time, the population of the village was 441. To serve the growing population, commodities began to be brought in from nearby Jefferson. New stores were established.
The village became a city in 1854 when the first post office was established. The city's name was originally “Bright Star”. Mail to and from the city was delivered by the Pony Express. On May 18, 1871, the legislature moved the county seat of Hopkins County from Tarrant to Sulphur Springs, and the name “Bright Star” was removed from the postal directory.
Local government organized slowly. The first known mayor was William A. Wortham. In 1854, Wortham had bought the ‘’Texas Star’’ press and moved to Sulphur Springs. His brother-in-law, Bill Davis, and he established the city's first newspaper.