Nevada enjoyed some prosperity after becoming a stop on the St. Louis Southwestern Railway, and the town incorporated in 1889.

On May 9, 1927, a half-mile-wide F4 tornado ripped through Nevada, leaving 19 dead, 100 injured, and property damage exceeding $650,000.

[6] The town had a difficult recovery; citizens voted to unincorporate, and placed the restoration of the community in the hands of the Collin County authorities.

However, the growing mechanisation involved in agriculture, along with the Great Depression, caused the town to fall into stagnation.

Recent growth in Collin County during the last 25 years has moderately improved life in Nevada.