Between 1906 and 1907 both the Trinity and Brazos Valley Railway and the Houston and Texas Central Railway extended lines through Iola, and a new townsite was laid out along the tracks near the T&BV depot. A tap line of the Texas and New Orleans Railroad connected Iola with Navasota. The coming of the railroad invigorated the community. A print shop was established, and a newspaper appeared, the "Iola Enterprise", edited and published by Rev. A. J. Frick, pastor of Zion Methodist Church. In 1909 the Iola State Bank was organized. The population reached 300 in 1910, and by 1936 the town had an estimated 500 people and twelve businesses.