The community was originally known as Huffs Gulch when J. Wesley Seat homesteaded in the area in 1885. In 1890, area businessman John P. Vollmer rechristened the area with his own surname when he brought the railroad through. Vollmer gained much of his 30,000 acres of land by foreclosing on the bank loans of local farmers. This made him so unpopular that in 1897 the residents decided to rename the town. Local legend states that the name Troy was selected when a Greek railroad worker offered free shots of whiskey to any who would support the name.