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Royse City is situated in the upper east corner of Rockwall County and broadens north into Collin County and east into Hunt County. Royse City is on State Highway 66, five miles upper east of Rockwall in the northeastern corner of Rockwall County.

In the mid-1880s, the area that is now Royse City was rumored as being along the route of a rail line to be constructed through the county by the Missouri, Kansas, and Texas Railroad. A local landowner named G. B. Royse identified the location of the new rail line and used the information to lay out a townsite, which he named Royse City. He started selling lots and many of the first people to settle in the newly created town were from the adjacent community of Fate, which was not on the new rail line.

The railroad brought economic opportunity and growth, and Royse City quickly grew. The first company, a general merchandise shop, opened in December 1885 and was quickly followed by numerous other establishments, many of which were transported on rollers from Fate. Royse City was granted its first post office in 1886. By 1890, the town had grown to 1,000 people, with two cotton gins, a gristmill, and twenty additional businesses. In 1896, the community had about forty businesses and by 1898, there were over 200 students enrolled in the local schools. In the early twentieth century, the primary industries were farming, raising livestock, marketing, cotton trading, cottonseed oil refining, and cotton ginning.

Royse City was originally incorporated in 1891, but 11 years later, the incorporation of the city was terminated. In 1906, the city was once again reincorporated, and by 1914, the city had over 1,200 residents that were served by 40 businesses. During the 1920s and 1930s, the population of the town fluctuated but remained at about 1,000 people, and at that time, it was reported to have 54 businesses in 1936.

Between 1950 and 1960, the population grew slightly from 1,190 to 1,243, although the city lost numerous businesses. Through the mid-1960s, Royse City’s population continued to fluctuate but by 1970, growth had returned and the population had risen to approximately 1,500 people. Over the next 10 years, the population and growth stagnated and at the beginning of the 1980s, the population was still around 1,500 people. Like most cities in North Texas, Royse City entered a sustained period of growth and expanded economic activity in the 1980s, and by 1990, the population had reached 2,200 residents.

The slow but steady growth continued throughout the 1990s, and by the year 2000, the city had almost 3,000 residents. The growth and development of Royse City exploded in the 2000s with the population more than tripling to over 9,300 people by the year 2010. Over the next 10 years, the growth continued, albeit at a slower but still brisk pace.

Today, Royse City is an official Texas Main Street City that works to foster a vibrant downtown commercial district while retaining its historic structures and covers 15.1 square miles with over 15,000 residents.