Founded as Hamilton in 1852, the town was renamed in 1858. The arrival of the Austin and Northwestern Railroad in 1882 made Burnet the trade center for several surrounding counties. Wool was a major commodity. Stone quarried from Granite Mountain, fourteen miles south, was brought to Burnet for cutting for the State Capitol in Austin ( AU1), totaling over thirty-one thousand tons. Dam construction along the Colorado River following the Great Depression brought new prosperity to the area.
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