South Bend is on State Highway 67 on a bend of the Clear Fork of the Brazos River, near the conflux of the Red Fork of the Brazos River. The community was first called "Arkansas".

The post office was established by John M. Kirby on May 7, 1878 and the name of the town was renamed "South Bend". Young County records show a mercantile store in the area established by J.N. Smith. Early pioneers of the community include: Miller, Matthews, Burgess, Norman, Goode, Ford, Rice, Fickling, McBrayer, Payne, McCluskey and Scott.

The Lindy Lou No. 1 was drilled on the B.F. Scott land on April 1917 by the Roxanna Company. Lindy Lou did not become a big producer, but in 1919, the McCluskey No. 1 began drilling and the well came in on July 4, 1920. The plat for the townsite was filed in Young County on December 16, 1920. The population of South Bend grew to 10,000 inhabitants with 50 hotels, a picture show, dance halls, lumber yards, Guaranty National Bank, train depot, four cafes, three lumber yards, Eddleman Furniture and Undertaking, pool hall, two drug stores, two barber shops, doctor's office, LeSage Ford Motor Company, skating rink and a multitude of businesses within a year.

Enterprise school was the first school in the area organized on December 18, 1876 and closed in 1882. The building was located south of South Bend. Young County records show the trustees were John M. Kirby, John H. Wood and J.M. Rice.

The second school was located two miles south of the town on the east side of the South Bend and Breckenridge highway in the northwest corner of the C. Smith Survey, Abstract No. 1634.

The last school was built of brick in the 1930s and had a gymnasium. The school was located in the northeast corner of the J. Garrett Survey, Abstract No. 108.

In 1929, an oil well was drilled to 4,250 on the E.C. Stovall plantation land. The casing was set on June 29, 1929 oil and gas rushed to the surface making over 8,000 barrels of oil with a gas volume of 12,000,000 cubic feet. Within a few days, the well began to flow mineral water at a temperature of 120 degrees. The volume of oil decreased and the flow settled to eight barrels of oil daily and 2,400 barrels of hot water.

A tenant on the Stovall plantation discovered the value of the Hot Wells and E.C. Stovall developed a resort at the site. Stovall family records indicate a bath house, hotel, cafe, tennis, skeet shooting, swings, croquet, singings and a lighted ball field. The bath house burned.