Aledo was established in 1879 when the T&P RR was extended through town. The original name, Parker, caused such confusion in the mails that the post office requested the name be changed, which then occurred in 1882. W. C. Hickson, a railroad engineer, suggested the name of his hometown, Aledo, Illinois. The town in Illinois was named after Aledo, Spain located on the southern Mediterranean coast established in the Middle Ages by the Moors. The transcontinental Bankhead Highway traverses the northern border of the City.

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