The Panhandle Townsite Company, owned by the principals of the Beaver, Meade and Englewood Railroad ("BM&E"), platted Tracy on May 1, 1931, intending for the community to become a commercial and agricultural center for the region on the BM&E line that extended from Forgan, Oklahoma to Keyes, Oklahoma.

[2] The Tracey Woodframe Grain Elevator in Muncy is listed on the National Register of Historic Places in Texas County, Oklahoma.

Tracy, unlike many other towns on the line, failed to prosper, with the railroad arriving during the dust bowl having obvious effects.

Eva, Oklahoma to the town's west had greater success and an elevator there still remains today.

Milepost 77 of the line straightened out at Tracy, to finish its jog due west to mile post 103.5, end of track, at Keyes.