Sulphur Bluff, at the junction of Farm roads 69 and 71, eighteen miles northeast of Sulphur Springs in northeastern Hopkins County, was settled by Robert and Hesakiah Hargrave in 1842 on a bluff overlooking the Sulphur River three miles north of the present location. Robert Hargrave built a workshop, mill, and gin; on May 12, 1849, he became first postmaster. The county's first election was held at Sulphur Bluff in 1846. Hargrave moved the mill, shop, and post office to the present location in 1850; other settlers followed, and the original site was abandoned. By 1885 the town had a steam gristmill, three cotton gins, three churches, a school, and an estimated population of 250. A bank opened after 1900, and by 1905 two local public schools were in operation with a total enrollment of ninety-six. The town continued to prosper during the first two decades of the twentieth century, and by 1925 the population had reached 300. A small oil boom followed the discovery of oil two miles south of town in 1936. In 1947 the community had six stores, three churches, a consolidated high school, and a population estimated at 350. During the 1950s the population declined to 280 and many businesses closed. By the mid-1960s only three stores remained. In 1990 Sulphur Bluff had a population of 280 and one business. Ten years later, the high school had eighty-five students. The population remained at 280 in 2000.