Pronounced "HIGH-coe." In northeastern Hamilton County, the city was named by founder Dr. John R. Alford for his hometown in Kentucky. The original site was on Honey Creek, but when the Texas Central Railroad was built nearby, the citizens moved 2.5 miles to the railroad line. Hico was incorporated in 1883 and became the county's shipping center.

The downtown area, at U.S. 281 and Texas 6, features antique stores, an artist studio, restaurants, and a leather shop. Local musicians play here on Saturday nights. The historic home of internationally known photographer Frank Rufus Wiseman, built in 1903, houses a chocolate company and antiques. 406 W. Grubbs Road.

One of the oldest Old Settler's Reunions, dating from 1882, is held annually each July on the picnic grounds in the city park.