It was part of empresario Henri Castro's colonization of the Medina River valley in the Republic of Texas.

When the springs upstream on Verde Creek dried up they moved to a new water source found four miles downstream, calling their settlement New Fountain for the spring.

In 1857, New Fountain was the fourth post office to be established in Medina County which remained until 1914.

John Schaper had organized a Methodist church,[5] which with its cemetery, is now the last vestige of this old settlement remaining.

By 1860 New Fountain had besides the Methodist church, a mill, and a Masonic lodge and was a stagecoach stop on the San Antonio-El Paso Road.