The area, initially settled as part of a Mexican land grant, was formally established as a city on April 1, 1881, when Cornelia Trimble donated land for a town site at an International-Great Northland Railroad depot there. The city's name reportedly is derived from the Spanish word, viuda, meaning "widow." The town was a popular eating stop for travelers, and its name may refer to a pair of widows who cooked at the notable Carrington House in the late 1800s.

Buda is 17 miles from Austin on I-35. Its growth has paralleled Austin's since the 1980s.

As the Outdoor Capital of Texas, Buda recently opened a 52-acre Buda Sportsplex park that features a lengthy trail system, fishing pond, playground and xeriscape. 512/312-0084.

The city also is known as the Wiener Dog Capital of Texas. Events include the Buda County Fair and Wiener Dog Races in April; Red, White and Buda in July and Budafest in December.