by fire in 1879. Recovery was rapid, however, and more substantial buildings were constructed. In 1882, the Taylor, Bastrop and Houston Railway (later part of the Missouri-Kansas-Texas Railroad) reached the community, and machine shops and a roundhouse served both rail lines. In 1882, the town was incorporated with a mayor-council form of city government, and in 1883, a public school system replaced a number of private schools.

By 1890, Taylor had two banks and the first savings and loan