Jefferson is located in Marion County, which was named after Francis Marion, the "Swamp Fox" of American Revolution fame. Jefferson was established in 1842 and named after Thomas Jefferson. Located on the banks Big Cypress Bayou, it was a busy riverport with as many as fifteen riverboats at a time lined up at its docks for loading or unloading.

The little settlement grew due to multiple factors. There was an abundance of timber and access to the Red River through Big Cypress Bayou. Iron ore was discovered there and a smeltering plant was built. It had indirect access to large seaports such as New Orleans. In time, Jefferson grew to a population exceeding 30,000 residents.

It became the first town in the state to use artificial gas for street lighting in 1867. One of Texas' first breweries was built there and the world's first ice plant to use ammonia as a refrigerant, was built in Jefferson in 1873. The ice plant was destroyed by fire in 1874, but not before proving that its design was superior to others in existence.

In addition to its river traffic, Jefferson had a lot of wagon trains and stage coaches going through it, making it a hub of activity.

Jefferson's decline started in the 1870s when the US Army Corps of Engineers cleared a massive log jam that had blocked the Red River for years, north of Shreveport, Louisiana. With the log jam cleared, the water level in Cypress Bayou receded to a level that would not accomodate the river traffic of the past.

In addition, railroad tycoon Jay Gould was unsuccessful in his efforts to get the citizens to donate land for a planned railroad. The railroad bypassed Jefferson.

In 1877, a couple arrived in Jefferson only for a few days. He left, leaving her dead in the woods. The beautiful Diamond Bessie was murdered there and the ensuing investigation led to the most publicized trials (there were two of them) of the time.

Today, Jefferson still has many of the old structures that were there during so much of its history, making it a shining example of what town life was like a century ago.

When in Jefferson, be sure to visit the Excelsior House and ask to look at the register. In it you will see the signatures of Ulysses S. Grant, Ladybird Johnson and many other dignitaries who visited Jefferson. Also, when looking at the register, should you read the entry, "A. Moore and Wife", and feel a cold chill, it has been experienced before. A. Moore and Wife were aliases used by Abraham Rothschild and Diamond Bessie. Jefferson has been called the most haunted place in Texas.

Jay Gould's personal train car sits across the street from the Excelsior Hotel.

More than thirty buildings in Jefferson have Texas state historical medallions on them.