The Anderson County portion of the community is located within the Palestine, Texas micropolitan area.

Houston's Mound, as it was known then, was founded in the 1840s and named after an area where the terrain was higher than average.

It was a thriving town until World War II; in 1930, Mound City had a general store, church, and a few houses.

[3] Mound City was never large enough to provide quality education to the pupils, so the students attended school in nearby Percilla.

Students who live on the Anderson County side of Mound City are within the Slocum Independent School District, so it is presumed that when Percilla consolidated their school, they gave their Anderson County portion to Slocum.