[4] The city has five of the nine prisons and state jails for women operated by the Texas Department of Criminal Justice.

[8] Gatesville was established in 1854 on land donated by Richard G. Grant (1808–1858), shortly after the organization of Coryell County.

[14][15] This line later became the core of the St. Louis Southwestern Railway Company, commonly known as the Cotton Belt.

The population doubled from 1980 to 2010 with to the establishment of the Texas Department of Criminal Justice prisons.

[21] Two manufacturing companies are located in Gatesville: Gatesville is the home of several prisons operated by the Texas Department of Criminal Justice, including the Patrick O'Daniel Unit, which houses the women's death row.

Gatesville is located on the northern edge of Fort Cavazos, and as such is also dependent on the military for a part of its economy (besides Fort Cavazos, a large military vehicle repair facility is located on the east side of town).

Timothy F. Orwig (born 1949) of the Cove Herald said, "Correctional officers in gray uniforms have been a common sight in the town's businesses for years, and the job of a 'prison boss' was once a highly regarded career choice in Gatesville.

In addition the Patrick O'Daniel Unit, a prison with the State of Texas female death row, is in Gatesville.

[33] Since 2000, the Prison Boss Cookoff, a barbecue competition that serves as a fundraiser for the Correctional Peace Officers Foundation, has been held every year.

[34][35] As of 2014, the Last Drive-In Picture Show in Gatesville, opened by Gene Palmer in 1955 — and, as of 2004, owned by his son, Audie Gene Palmer (1957–2004) — was one of 17 remaining drive-in theaters in Texas; of those 17, it is one of oldest and longest continuously running.

[36][37] The Gatesville High School Hornets were the 2000 Texas UIL 4A high-school football champions.