The land which was the townsite of Chisholm, was given to a veteran of the Mexican War, King Latham in 1847. Enoch Parson Chisholm purchased 200 acres from Latham in 1856 and a few years later, 600 acres for $2.00 per acre. In 1886, the town of Chisholm was platted. Chisholm derived its name from Enoch Parson Chisholm and from his brother, B. Frank Chisholm, a colonel in the Civil War.
Enoch Chisholm was not only a farmer and landowner, but a licensed preacher in the Methodist Episcopal Church, South. Enoch organized the Chisholm Methodist Church in his home in 1871 and by 1875 had constructed a small chapel, called Chisholm Chapel by the congregation, which was still standing in the 1980s. The community had two small school buildings, which were combined to form Berry Creek Academy in 1886. In 1898 this school had four rooms, four teachers, and 301 students; it was the second-largest school in Rockwall County.