Gageby, near the Hemphill county line in northern Wheeler County, was named for nearby Gageby Creek. The community's original site was in southern Hemphill County. A rural school and church had been built on the site as early as 1900, but the town was not actually founded until 1907. In 1910 a post office was opened for the benefit of area farmers and ranchers at the home of A. A. Hennington, who also established a general store. From 1910 to 1920 the town had a barbershop, a service station, a blacksmith shop, a cotton gin, and an average population of ten. From 1930 to 1950 the population of Gageby ranged between twenty and fifty. The general store and post office were moved to U.S. Highway 83, two miles away, in 1945. The post office closed in 1954, though the community's population was still listed as fifty as late as 1960. By the 1970s all that remained of the original town was the G. C. Barker home and the community cemetery.