Falls Creek School and community were named for  Falls Creek.  The school was situated between Old Hico and Fairy. Falls Creek begins thirteen miles northeast of Hamilton. FM 1602 crosses Falls Creek west of Fairy. It enters Bosque County to empty into the Bosque River near Iredell.

"Falls Creek heads north of Fairy and Hico road, goes into Bosque County and empties into the Bosque River near Iredell."- -Doris LaRue Stapleton and Capt. C. E. Horton.

Milton Osburn Gleason (who was born January 1, 1850 in Cannan, Maine; died, March 1923) and his wife Sophia Hannah Benn Gleason moved from China Spring to the Falls Creek area about 1881.

Some of the families in the Falls Creek School Community were Ben and Hallie Abel, Frank and Lydia Allen, Justin and Belle Bullard, H. A. and Maymie Burden, Cecil and Edith Couch, M. L. and Mary Foust, L. and May Gossett, J. E. and Ella Grimes, Joshua Iredell and Homa Esse Blakley Jameson, Monroe and Cora Latham, Fannie Morrison, C. W. and Myrtle Russell, Annie Scott, Jack and Cleo Scott, Mr. and Mrs. S. W. Squyres, and J. L. and Mable Washam.