c. 1880, the San Antonio and Aransas Pass Railway attempted to build a line through Collins, which then had approximately 2,000 inhabitants.

The townspeople were not amenable to selling their land to the railroad company; consequently, the railroad site was moved 3 miles west, and in 1883, a depot called "Bandana" was established at its junction with the Corpus Christi, San Diego and Rio Grande Railway.

Alice was known for its large cattle industry until the discovery of petroleum beneath and around the town in the 1940s, which caused a slight population boom.

In the 1948 United States Senate election in Texas, an incident (Box 13 scandal) involving Lyndon B. Johnson's bid for the U.S. Senate took place at Alice's Precinct 13, where 202 ballots were cast in alphabetical order and all just at the close of polling in favor of Johnson.

[7] Alice has long been recognized as the "Birthplace of Tejano Music",[8] dating back to the mid-1940s, when Armando Marroquin Sr., of Alice and partner Paco Betancourt of San Benito launched what was to be the first home-based recording company to record Tejano artists exclusively.

Ideal Records, which was based in Alice,[9] under the direction of Marroquin became the perfect vehicle for Tejano groups and artists to get their music to the public.

Marroquin, who also owned and operated a jukebox company, ensured that Ideal recordings would be distributed throughout South Texas.

The songs recorded, which were contributed by Tejano and Mexican composers, became very popular through jukeboxes placed in restaurants, cantinas, or other establishments that would have them, and the then-scarce Spanish-language radio programs.

According to the 2022 United States census estimates, there were 17,697 people, 5,955 households, and 4,535 families residing in the city.

As of the 2020 United States census, there were 17,891 people, 6,129 households, and 4,362 families residing in the city.

Alice is called the "Hub City" due to its geographical location between Corpus Christi, McAllen, Laredo, and San Antonio.