The community grew after the Santa Fe Railway was built outside the area in 1877. Just over a century later in 1978, the residents there voted to become incorporated, and by the 1980s, Santa Fe annexed the towns of Arcadia and Alta Loma. The City of Santa Fe came to be because the neighboring City of Hitchcock tried to annex a large portion of Alta Loma. After a six year struggle the residents of Alta Loma were given the chance to become their own incorporated city. To be in accordance with the laws of Texas they needed a certain number of residents within the area and a large part of the next town of Arcadia was included. The new city which included the towns of Alta Loma and Arcadia needed one name. The name of Santa Fe was chosen after the Santa Fe Independent School District which surrounds the area. It was the Santa Fe School District that got its name from the railroad in the early 19th century.
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