The City of Elsmore began in 1888 as a popular trading center and shipping point for residents in southeast Allen County. In 1909, Elsmore was incorporated. By 1910, population was reported at 216. Elsmore grew around the Katy Railroad Depot. Elsmore boasted a lumber company, grain elevator, hardware store, drug store, hotel, post office, schools, and churches. At its peak, Elsmore had a population near 300. With the introduction of the automobile, Elsmore began to dwindle. The automobile made it feasible for people to travel for employment, shopping, and entertainment.
Eventually schools in Elsmore closed. The City of Elsmore still has a community center and small park. For many years Elsmore has maintained a population between 70-100 residents.