Historic Institution
Terrell State Hospital opened in 1885 and became a landmark employer
The state chose a site near Terrell in 1883 for Texas's second psychiatric hospital — it grew into a major regional facility and for decades was the largest employer in the area.
In 1883, the Texas Legislature approved a second psychiatric hospital to ease crowding in Austin. A committee picked a 672-acre site one mile northeast of Terrell. The hospital opened in July 1885. Its first name was the North Texas Lunatic Asylum, which reflected the medical language of that era. It was renamed the North Texas Hospital for the Insane in 1888, then Terrell State Hospital in 1925.
By 1920, the facility held 2,300 patients. Through the 1990s, the hospital employed more than 1,200 people. It was called the single greatest asset to Terrell's economy. A national shift away from large institutions reduced patient numbers after 1970. The facility still runs as a psychiatric hospital today.
Source to confirm: TSHA Handbook of Texas — Terrell State Hospital