Lakehills, also known as Upper Medina Lake, is on Park Road 37 eight miles south of Bandera Falls in southeastern Bandera County. County road improvements that began in the late 1930s were delayed by World War II, and as a result, development of the area did not really begin until the 1950s. The community was known as Upper Medina Lake until a post office substation was established there in the early 1960s. The Lakehills station was operated as a contract post office, supervised by the postmaster at Pipe Creek. The population of Lakehills in the mid-1970s was reported as 300. By the early 1990s it had risen to 2,239. The population grew to 4,668 by 2000.