By 1896, San Marcos was a community with its own stores, post office, blacksmith, and railroad depot. The first school in the area, which was started in Barham in 1886, had been moved to San Marcos three years later, as Barham was fading due to its distance from the railroad.
San Marcos became an incorporated city on January 28, 1963. In the 1970s, San Marcos was flourishing as the third fastest-growing city in the state, with a population of 17,479 by 1980. The city continued to boom during succeeding decades, surpassing 30,000 in 1990 and nearing 100,000 by 2020.