Parmerton, on U.S. Highway 60 in central Parmer County, was originally known as Parmer Switch when the Pecos Valley and Northern Texas Railway built through in 1898. The town, like the county, was named for Martin Parmer, a signer of the Texas Declaration of Independence. The townsite, surveyed and platted by J. S. McClearey, comprised 200 acres of land formerly owned by the Capitol Freehold Land and Investment Company (the XIT Ranch). The company had previously established a model farm on the site and in 1906 used dry-land farming methods to produce a successful wheat crop. A one-story frame courthouse was built atop Parmerton Hill, the halfway mark between Friona and Bovina, with a residence for the county judge nearby. Across the road was a "cook shack" that served meals to inhabitants and passersby. A post office was established in September 1907 but was closed on August 15, 1908.
Parmerton was voted county seat on May 7, 1907, and almost immediately a movement to displace it began. Another election was held on December 10, 1907, and Farwell was chosen overwhelmingly. Five months later county records were moved to the "Hamlin Brick," a new building in Farwell. Parmerton was never further developed as a town and rapidly declined. Today only a historical marker and the Parmerton railroad switch mark the site.