This blackland prairie site was first settled in 1854 by a slave named Adam Orgain, who was sent to watch over the ranching interests of his owner, John Orgain. Soon after, a handful of families, including the Huttos, settled on the land. The town was named after James Emory Hutto, who sold 50 acres in 1876 for a town site and donated land for the International Great Northern Railroad's right-of-way through the area. Hutto was designated as the "Official Hippo Capital of Texas" by the 2003 Texas Legislature. A 14,000-pound "Henrietta the Hippo" statue in the downtown district and 3,000 smaller ones can be seen throughout the city.

Early 20th-century Texas architecture examples can be found in downtown Hutto, where several brick buildings that are more than 150 years old can be seen. The Hutto Olde Tyme Days Festival, held the third Saturday in October, features live music, a children's carnival, and an antique car show.