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Coffee City is a small town in southeast Henderson County, Texas, United States. The population was 278 at the 2010 census, up from 193 at the 2000 census. The city was developed after the construction of Lake Palestine in the early 1960s. As it is located on a sliver of Henderson County, a wet county, which extends eastward onto Lake Palestine and Texas State Highway 155, a number of liquor stores sprung up by the 1980s to capture business from residents of Tyler and neighboring Smith County (which at the time was dry). The importance of Coffee City declined in 2012 with the passage of legislation which allowed beer and wine sales in Tyler. [edit] Research Tips
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