The Hancock County portion of Dallas City is part of the Fort Madison–Keokuk, IA–IL–MO Micropolitan Statistical Area, and the Henderson County portion of Dallas City is part of the Burlington, IA–IL Micropolitan Statistical Area.

According to historical records, a man named Israel Atherton purchased the land around present-day Dallas City in 1836.

He sold the land to John Finch, who built a village, which today is still recognized as, Dallas City.

[4] It was laid out in 1848, and named in honor of George Mifflin Dallas, 11th Vice President of the United States of America, from 1845 to 1849.

Many local men were instrumental in persuading Lincoln to visit Dallas in 1858, including George M. Ames, H.F. Black, and Ben Mendenhall.

According to the Dallas City Review newspaper, several efforts were made by Democrats to tear down the platform that had been erected for Lincoln to use during his speech.

A monument to represent Lincoln's visit sits on the Mississippi River on the Riverfront Park at the end of Oak St.[7]There was supposed to be two stones with bronze plaques, one for Lincoln's visit, the other for President James Polk along with his Vice-President, George M Dallas.

Amtrak’s Southwest Chief, which operates between Los Angeles and Chicago, passes through the town on BNSF tracks, but makes no stop.

[18] Upon promoting from the eighth grade, students attend high school at Illini West in Carthage, Illinois.