Anarene, in south central Archer County, was named for Annie Lawrence Graham, daughter of pioneer settler J. M. Keen, who, after serving in the Confederate Army, began ranching in the area and built up his herd to 15,000 head. He used a terrapin emblem for a brand because he found a rock painting of a terrapin at Terrapin Springs, three miles northwest of Olney. His daughter Annie married Charlie Graham, whose family came to Archer County to raise sheep. Joy Graham, their son, claimed that "the only reason he was born was due to the invention of barbed wire, which kept peace, leading to a marriage between the sheepman and cattleman."
Anarene was founded on the Wichita Falls and Southern Railroad in 1908. Its primary economic activity was hauling coal from the recently opened Newcastle Mine, some twenty miles south. Charlie Graham built a two-story hotel, opened a post office, and laid out the town with the help of J. H. Kemp and Frank Kell, officials of the Wichita Falls and Southern Railroad Company. Most businesses were on First Street; the school was to the west of Graham Street and south of Dallas Avenue. The railroad buildings, old store, dipping vat, cotton gin tank, loading ramps, cattle pens, and baseball field were across the tracks to the east.
From the Anarene pens thousands of cattle were shipped to market. Early in World War I Sam Cowan sent a shipment of several hundred four-year-old steers weighing 1,800 pounds each from Anarene to St. Louis and received eighteen cents a pound, the record high price at the time. In 1929 Anarene had a store, a schoolhouse, a post office, a blacksmith shop, a filling station, and a two-story hotel. Graham owned a stock farm of several thousand acres nearby and took part in school and church affairs in Anarene. The Texas Almanac reported a population of 100 for 1929, but by 1933 the number had declined to only twenty. The railroad station closed in 1951 and the post office in 1955.