During the construction of the Santa Fe Railroad, a group of residents bought land along the right-of-way. Stone buildings were build from limestone quarried from the cap rock of the west mountain. Several businesses moved from Trickham and Brownwood to be a part of the new community. In 1886 The Santa Anna News was established. The first telephone in the county was a private line from Brownwood to Coleman, connected in the Melton Hotel in Santa Anna. A small local exchange was opened in 1892. A drugstore and a bank were opened in the 1880s, and a one-room school was opened that soon expanded to four rooms.

As the open range was preempted and sold, land was cultivated, with cotton the principal crop. Santa Anna eventually had four cotton gins in operation, and was also a major rail shipping point for livestock. The town became a trade center with a thriving business district that included drugstores, hotels, banks, livery stables, and produce houses. One of the early buildings, still a landmark downtown, housed an opera house, where traveling groups and local performers provided entertainment and culture.

After World War I, Dr. T.R. Sealy established a hospital that soon became widely known. A nursing school was founded in the 1920s to provide trained nurses, continuing until the death of Dr. Sealy in the mid 1930s.

Santa Anna in the twenty-first century is experiencing a resurgence of economic prosperity. More than 6000 vehicles per day pass through main street, providing the new furniture, antique, and specialty stores with ample traffic. Hand-made, heirloom quality furniture and rustic, southwestern décor are the talk of Texas. The Coleman County Telephone Cooperative and its subsidiaries offer state-of-the-art satellite television and local access to the Internet and the World Wide Web as well as top-notch local and long distance telephone service.

Changes in the town have been very subtle over the last century. While the population has declined in the past thirty years, almost any needed service or product is available. Many former residents make their way back to the Mountain City to retire to the simple life-style, low taxes and crime rate, and friendly neighbors.

Good schools are a focal point of community life, along with civic clubs, churches, and organizations. Mountain climbing and hiking are perennial favorites of visitors to the community, with historical markers noting several areas of interest.
Santa Anna and the surrounding area offer the first class dove, quail, turkey, and deer hunting, as well as Central Texas' only pheasant hunting facility. Nearby bodies of water, including Lake Brownwood and Ivy Reservoir, offer prime fishing opportunities. Local guides are available, as well as are photo safaris.

Plans are on-going for the continuation of the relationship between the Comanche Nation and the town nestled at the base of Santa Anna's Peaks. The Funtier Days World Championship Bison Cookoff is the third weekend in May. History and nature are the sources for much of the future and prosperity of this area.