DeSoto is one of the oldest settlements in North Texas. In 1847, just 11 years after Texas won its independence from Mexico, families first settled in the area that is now DeSoto. Around 1848, T.J. Johnson, fresh from Tennessee, built a tiny general merchandise store near the "crossroads" - located at the intersection of a road stretching north/south from Dallas to Ellis County and another running east/west from Lancaster to Cedar Hill (now Hampton and Belt Line Roads).

In 1881, a post office was established, and the settlement was given the name of DeSoto in honor of Dr. Thomas Hernando DeSoto Stewart, a beloved doctor dedicated to the community. During those early years, people in the community worked on farms and went to church, and not much changed until the 1940s.

After World War II, the area began to grow, as did all of the towns and cities in Dallas County. Because of the growth that the community was experiencing, the people felt the need to incorporate to improve an inadequate water distribution system. On February 17, 1949, a petition requesting an election for incorporation (signed by 42 eligible voters) was presented to Dallas County Judge W.L. Sterrett. The election was held March 2, 1949 with 50 votes in favor of incorporation and two opposed.

On March 3, 1949, the results of the election were entered into the records of the Commissioners' Court of Dallas County, creating the City of DeSoto. On March 15, 1949, a city officer's election was held. Wayne A. Chowning was elected mayor, and T.O. Hash, Malcom Hamm, S.I. Vaughn, Roy E. Spurgin and A.P. Bagby were elected councilmen.

The first called city council meeting was held at the schoolhouse on E. Belt Line Road on March 17, 1949, with C.H. Estes appointed as city secretary. The City of DeSoto was determined to have a population of approximately 400, thus DeSoto became the 19th organized municipality in Dallas County.