According to the United States Census Bureau, the town has a total area of 0.1 square miles (26 ha), all land.

The area that became known as Impact began as a 20-acre (8 ha) poultry farm owned by advertising businessman Dallas Perkins.

Perkins capitalized on the potential market for legal liquor among the wets by purchasing 27 acres of land adjacent to his farm on the outskirts of Abilene and then pushing for its incorporation.

[5][6] Calling the village "Impact" after his advertising business, 29 signatures of local residents were collected and it was incorporated in 1960.

[5] With the newfound revenues, the village's roads were paved and lighted, garbage pickup was introduced, and a policeman was hired.

One of the liquor stores was Pinky's, which was owned by Perkins and his associates and used a logo of a pink elephant, thus the name.

[8] Impact remained the only wholly wet municipality in Taylor County until 1978, when Abilene voters narrowly legalized (by a 131-vote margin) liquor sales in the city.

[7] As of the 2020 United States census, there were 22 people, 13 households, and 9 families residing in the town.