Troutdale, Grayson's westernmost incorporated town, encompasses a circle within a mile of the town's center. The town imposes no taxes, has no police department and sells no auto decals. Troutdale has a municipal water system that serves 75-80 homes. Law enforcement and garbage collection services are provided by Grayson County.

If you visited back in the 1920s or 30s, you could have ridden the old Marion & Rye Valley Railway , a narrow-gauge logging train that connected with the main railroad line in Marion. The railway company went out of business and pulled up its tracks in 1943. Troutdale was a lumbering "boom town" with a population of 2,800. The town had stores, a railroad depot, an electric power company, a chair factory, a photograph galley, a theater, a couple of hotels, a newspaper and even a soda pop factory.

Troutdale began its decline when the chair and furniture factories lost a big order from the Cuban government in the 1920s. They went bankrupt and both burned. By 1925, the land near Troutdale was timbered out and the lumber companies also closed.