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==History== The city was developed after the construction of [[Lake Palestine]] in the early 1960s.<ref>[https://tshaonline.org/handbook/online/articles/hrcxn Handbook of Texas Online, Christopher Long, "Coffee City, TX,"] accessed March 16, 2018, http://www.tshaonline.org/handbook/online/articles/hrcxn.</ref> As it is located on a sliver of Henderson County, a [[wet county]], which extends eastward onto Lake Palestine and [[Texas State Highway 155]], a number of liquor stores sprang up by the 1980s to capture business from residents of Tyler and neighboring Smith County (which at the time was dry).<ref>[https://books.google.com/books?id=giwEAAAAMBAJ&dq=%22coffee+city%22+%22dry+county%22&pg=PA138 Reporter: Dog Day in Dogwood City], Jim Atkinson, Texas Monthly, November 1983.</ref> The importance of Coffee City declined in 2012 with the passage of legislation which allowed beer and wine sales in Tyler.<ref>[https://tylerpaper.com/news/local/beer-wine-sales-boon-to-tyler-bust-to-outlying-areas/article_2319aa95-d0bc-5822-8a5e-a937f69371c0.html Beer, wine sales boon to Tyler, bust to outlying areas], Tyler Morning Telegraph, June 15, 2015, accessed March 16, 2018.</ref>
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