[5] According to the United States Census Bureau, the town has a total area of 0.8 square miles (2.1 km2), all land.

A post office was established in the hotel later that year, and the town's name was changed to Woodsboro after Captain Tobias D. Wood, who had sold the Bonnie View Ranch to the developers.

The surrounding farmlands were praised in advertisements distributed across Texas and midwestern states, and a number of settlers began to move into the area.

Other stores and a Masonic temple were quickly added, and in 1910 the town's first newspaper, the Woodsboro Hustler, began publication.

The Bank of Refugio opened a branch in Woodsboro in 1912, and in 1913 a contract was awarded to install electrical power and lights in the community.

The Commercial Club, a group of local businessmen organized soon after the town's creation, actively worked to improve the community.

The club organized the town's first water works, which were turned over to the local government when Woodsboro incorporated in 1928.

An estimated 450 people lived in Woodsboro in 1925, but the town experienced a small boom after 1928, when oil was discovered nearby.

Though the number of farms in the area surrounding the city declined after World War II, the oil and gas industry helped to sustain the local economy until the county's petroleum production dropped significantly during the 1980s.