Lacy was located two miles north of Loving, on the road from Loving to Markley, near Hawkins Chapel. The settlement was established in 1895, and named for the General Store owner Lacy M. Midgett. The town had a school and Post Office in Lacy's general store. The mail was carried from Graham for years by Bascon Whittenberg in a two-wheeled cart called a "jerky". The town closed in 1900.

Early settlers included C.W. Rasure, R.M. Summers, Daniel Chapel, Ed Cox, the Whittenburg and Cross families.

The school was located in the Susan Sallee Survey, Abstract No. 252, about 40 yards southwest of the northwest corner of the G & BN RR Company survey, Abstract No. 120.

A marker near the road is all that is left of the early community.