In 1873 during Reconstruction, the legislature organized Tate County from portions of DeSoto, Marshall and Tunica counties. Coldwater fell into the new county. The Town began to grow with an influx of settlers from Virginia, the Carolinas, Alabama, and other areas seeking a better life for themselves and their families. There were 397 residents of Coldwater according to the 1890 census. By 1884, there were 96 small schools in Tate County: 54 white and 42 black. They were mostly one teacher, one-room log houses with split logs for seats.