The discovery of oil in the area during the early 1930s caused the community to grow substantially. On May 12, 1933, Premont's first producing oil well was drilled. The community incorporated in 1939 and had a population of 1,080 in 1940. With its revitalized and oil-based economy, Premont continued to grow and prosper during the early post-war years. The town was home to 2,619 residents in 1950 and had a total of 55 businesses in 1952. In 1955, American Legion Post No. 297 was dedicated in Premont. The population peaked at 3,282 in the 1970 census and has slowly declined since.