BLUE HOLE was the point in Honey Creek where the first Hico--Old Hico/Honey Creek Trading Post-- was built. It was east of HWY 281 and southeast of the current city of Hico where FM 1602 crosses Honey Creek. There was at this point a deep hole of water known as Blue Hole in Honey Creek.  

Crockett Hendrix and his daughter were drowned here in 1904 when they drove into Blue Hole to water their horses. Blue Hole was eighteen miles north of Hamilton.