This town was settled around 1860 and named by Native Americans for the many springs that still flow through historic Katy Park. Growth and industry came when the Texas Central Railroad established headquarters here in 1881. Until the shops burned and the Katy Railroad chose not to rebuild, it was the largest town between Fort Worth and Waco. The town was home to Texas Ranger J.J. Cureton, one of the first settlers of Palo Pinto County, and James Buckner "Buck" Barry. Historic markers for both are in Katy Park, open 8 a.m.-10 p.m.
The Walnut Springs Annual Rattlesnake Hunt and Shows are on the first weekend of March.