Saline residue found along the banks of Salt Creek attracted settlers to the area in the 1850's. The first person to undertake commercial production of salt here was Martin V. Bowers. He arrived here during the civil war. Bowers was a local farmer and politician and later sold his business to A.B. Grant and moved to Parker County. A.B. Grant was a confederate veteran. He operated the salt works until 1871 when he was elected into the Texas State Legislature. He sold the operation to Gustavas A and Edwin S Graham.
The two brothers came to Texas with the Texas Emigration and Land Company. They only operated the Salt Works for two years before closing due to operating costs. Although the Graham Salt Works was not operated long, it played a vital role in the development of Graham.
In 1872 the Graham brothers founded the City of Graham. They donated land for a town, a courthouse, churches, schools, and cemeteries. The land was donated in the family name as we know it today. The Graham family has continued to play a vital role in the development of Graham.