Palm Valley was a small Swedish farm community off State Highway 79 a mile east of Round Rock in southern Williamson County. The site was settled in 1853 by a Swedish widow, Mrs. Anna (Andres) Palm, and her six sons; the community that grew around their farm was named for Mrs. Palm and her deceased husband, Gustaf. Other Swedes, such as John Anderson and John Israelson, moved to the vicinity in the late 1850s, and in 1861 A. J. Nelson built a log church there. As the Palm family encouraged Swedish settlement in the area by assisting immigrants who arrived with little money, Palm Valley became a focus of Williamson County's growing Swedish population. The Swedish Evangelical Lutheran Brushy Congregation, later known as the Palm Valley Lutheran Church, was established in 1870, and in 1876 the settlement became a stop on the International–Great Northern Railroad. No population figures are available for the settlement. The church, a graveyard, and a school were shown on a 1936 map of the site. Though the Palm Valley Lutheran Church continued to operate in 2004, the school had long since been closed, and the community had lost most of its cohesion and identity.