One of the towns that sprang up in the Rio Grande Valley in the early 20th century, Monte Christo was platted in 1909 by the Melado Land Company. Among the first settlers were Otto Woods (1882-1956), who managed the townsite, and Virgil Lott (1878-1960), who published a newspaper called "The Hustler". At its height, Monte Christo had a bank, school, railroad station, cotton gin, two hotels, and a population of 1500. Residents began to move away during the bandit raids of 1914-1916. Others left when the water supply proved inadequate. By 1934 Monte Christo was a ghost town.
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