Proctor was established in 1872 by Thomas Moore when he came west for his health. He decided to open a store and bought a small tract of land. He formed a partnership with Alexander Watson Proctor for whom the town was named. A post office was established in 1874 but discontinued in 1881. The community moved in the early 1890s, when the railroad bypassed the town by a mile. In 1891 lots were sold for a new community. Proctor became a shipping center. Proctor Reservoir, a federal flood-control lake, was impounded by a dam finished in 1963 on the Leon River. Lake Proctor provides water for the area and is a recreation area.