Founded as the county seat for the newly created county of Rusk in 1843, Henderson was named for Republic of Texas pioneer and statesman James Pinckney Henderson, who would later become the first Governor of the State of Texas. Land for the town was donated by W. B. Ochiltree, who stipulated that it be named for his friend Henderson, and by Republic of Texas General James Smith, who is known as the "Father of Henderson." Town lots were sold soon after the city was established, with land set aside for both churches and schools. A wooden courthouse was built in the center of town in 1849, and the town grew steadily as homes and businesses were constructed. A disastrous fire destroyed much of the central business district in 1860. Following the Civil War and the arrival of the railroads in this area in the 1870s, a large number of brick structures were built in the downtown area. The discovery of the vast East Texas oil field in 1930 caused an economic boom in Henderson. The population increased from 2,000 to 10,000 within a matter of months. The town continues to serve as a center of commerce and civic activities.