Early property owners wanted to name the city "Lamarine", but were convinced to name the area Waco Village, in honor of the Native Americans who had lived there.

In the late 1800s a red light district called the "Reservation" grew up in Waco. Prostitution was regulated by the city. The Reservation was abolished in the early 1900s.

The first Cotton Palace fair and exhibition center was built to reflect the dominant contribution of the agricultural cotton industry in the region. Cotton had been cultivated in the Brazos and Bosque valleys, and Waco became known nationwide as a top producer. Over the next 20-plus years, the annual exposition would welcome over eight million attendees, and the annual Cotton Palace Pageant continues to the present day.

An infamous event occurred in Waco on Feb. 28, 1993, when a deadly shootout came about. The stand off near Waco between federal officers and Branch Davidians, a Christian religious cult headed by David Koresh, led to a 51-day siege that ended in a blaze that killed 83 people.