Settled about 1838 by farmers and ranchers. First named "Barlow" after the local ferry operator. Townspeople were instrumental in organizing Live Oak County, 1856; started a school by 1858.
About 1872, rumors of money ("Dinero" in Spanish) buried here led town to change name. A post office was established in 1885. Town buildings were moved a mile west, 1913, to be on a new rail line. In 1925 Dinero piped first natural gas to Houston. Oil, gas continue to bolster economy.
Local landmark is hanging tree (200 yards southwest). Famous resident was J. Frank Dobie (1888-1964), Texas author.
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