Rutledge, named after a family of the Pond Springs area, was originally on the stage line from Austin to Burnet in southwestern Williamson County. The site was near that of the present intersection of U.S. Highway 183 and Ranch Road 620. With the arrival of the railroad in 1882, a new Rutledge developed one mile east on the railroad. The new community soon had a section house for railroad crews, a blacksmith shop, a store and post office, a cedar yard, and a quarry. In 1908 the post office closed, and soon after, the railroad crews were removed, leaving Rutledge practically deserted. During construction of Mansfield Dam (1941) on the Colorado River, a spur line was built from Rutledge to the dam site. After all materials for construction were transported, the spur line was removed.