Silver Valley, on U.S. Highway 84 and the Santa Fe Railroad in northwest Coleman County, was first settled by B. E. Smith and B. R. Brown about 1886. Smith built a gin near his home, and in the late 1890s A. A. Dunn built a store. J. B. Lowrie became the first postmaster when the post office was added to the store. It is not clear whether the community was named for settlers' hopes for silver deposits in nearby hills or from the land's fertility. In 1910 the post office was moved three miles to a location on the Pecos and Northern Texas Railway. By 1940 Silver Valley had two businesses and sixty-seven people. In 1980 through 2000 the population was twenty.