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Reece Hughes, founded Hughes Springs in about 1847 on the site of an old Choctaw Indian Village near 3 Chalybeate (iron) Springs on Trammell's Trace. Trammell supposedly buried treasure at the village and Hughes was hoping to find fortune here.

Using the abundance of iron ore, Hughes established a blast furnace in 1854. The Confederate Government took charge of the furnace during the Civil War and some authorities say the furnace had a capacity of 20 tons a day. Remains of the furnace were discovered on a farm belonging to Perry Fite of Dallas, east of Hughes Springs in the 1950s and the furnace was reconstructed near Lone Star Steel Plant. Traces of iron found near the furnace remains have been analyzed and show the Confederacy obtained good quality iron from the Hughes Furnace.

In 1856 Hughes built a 2 story mansion which burned in 1875. That year the first mercantile store was built. In 1873 Dr. J. H. McLean, established a Methodist Church, with about 80 members in the original congregation. In 1878 very little remained of the Reece Hughes' Town. However, his children and the children of Dr. J. H. McLean, stepson of Reece, signed a contract with the East Line and Red River Railroad. In May of that year they laid out and sold building lots and founded the town of Hughes Springs that still stands today. In 1880 a spring house and a large hotel was opened as a health spa because of the healing qualities of the Chalybeate Spring Water. Railroad excursions were run to Hughes Springs from Greenville and Shreveport. In July 1881 the First Baptist Church with 12 charter members was organized. Rev. W. W. Lee was first pastor.

The Enterprise was the first newspaper published in Hughes Springs. The first issue was printed 25 Aug 1899, N. T. Henderson, Editor. It was later published by Mr. Redditt, who later sold it to W. A. Callaway, who changed the name to the New Era. The first issue of 1899 advertisers' were: Eubanks and Cook, Merchants; Dr. O.M. Conerly, Physician and Surgeon; E. E. Brougher, Lawyer; McKinney and Jefferson, Railroad Co.; R. B. Hazel, Jeweler; W. D. McMillian, Tonsorial Artist; H. D. Whitaker, Hotel Manager; Parrish and Traylor, Wood Working Shop; Ledbetter Drug Store (that also served as a bank); Keasler sold everything from millenary to plow points and rifles to caskets; Alford Hotel; "Goug Eye" a whiskey store owned by Mr. Nix; W. D. and B. J. McMillian had a barber shop; Betty and Rufus Poole had a cafe. The Telephone exchange was run by Willie and Hazel Guest.

The first public school was opened in 1890. The City was incorporated in 1911.

The fire of 1914 destroyed many businesses, but the town rebuilt, the trains ran and the band played on Saturday at the Spring Park.