Round Mountain is at the junction of U.S. Highway 281 and Farm Road 962, on the eastern part of the Edwards Plateau eleven miles north of Johnson City in northern Blanco County. The first settler, Joseph Bird, arrived in 1854 and built a log house near the creek. The post office was established in 1857, and the town was named after a local landmark. This was the second post office in Blanco County. Round Mountain became a stage stop on the mail route between Austin and Fredericksburg. In 1871 residents obtained a charter from the state of Texas for a school and founded an academy that at one time had 200 students. Round Mountain became known as a health resort due to its elevation. It flourished with churches, doctors' offices, drug and grocery stores, a shoe shop, a blacksmith shop, a livery stable, and, later, a gin. In 1890 the town had a population of 200 and six businesses. By 1896 the number of residents had doubled to 400, but only five businesses were listed. The population declined after 1900. In 1931 the school was consolidated with the Johnson City Independent School District, and the churches closed. The population was reported at 100 from the 1920s through the early 1950s. It decreased from eighty in 1952 to seventy-three in 1972. In 1990 it was fifty-nine. The population reached 111 in 2000. The town was incorporated in 1989, at which time it had a post office, professional offices, a bank, an auction barn, a volunteer fire department, an assembly plant, and nine other businesses. Longhorn Downs is within the city limits. Joseph Bird's log house of 1854 has been restored, the Round Mountain Stagecoach Inn and Stable of 1874 has been placed in the National Register of Historic Places, and the Methodist church, built in 1876, has been restored.