Immigrants began arriving in the Peters colony area around 1850, but a community was not created until 1874. Two communities sprang up in the area: Embree, named for physician K. H. Embree, and Duck Creek, named for the local creek of the same name. A rivalry between the two towns ensued as the area began to grow around the Santa Fe Railroad depot.
Eventually, to settle a dispute regarding which town should have the local post office, Dallas County Judge Thomas F. Nash asked visiting Congressman Joe Abbott to move the post office between the two towns. The move was completed in 1887. The new location was named Garland after U.S. Attorney General Augustus Hill Garland.
Soon after, the towns of Embree and Duck Creek were combined, and the three areas combined to form the city of Garland, which was incorporated in 1891. By 1904, the town had a population of 819 people.
In 1920, local businessmen financed a new electrical generator plant (sold by Fairbanks-Morse) for the town. This later led to the formation of Garland Power and Light, the municipal electric provider that still powers the city today.