Alice originated from the defunct community of Collins, to the east. "Circa" 1880, the San Antonio and Aransas Pass Railway attempted to build a line through Collins, which then had approximately 2,000 inhabitants. The townspeople were not amenable to selling their land to the railroad company; consequently, the railroad site was moved 3 miles west, and in 1883, a depot called "Bandana" was established at its junction with the Corpus Christi, San Diego and Rio Grande Railway. Bandana soon became a thriving cattle-shipping point, and an application for a post office was made under the name "Kleberg" in honor of Robert Justus Kleberg, a veteran of the Battle of San Jacinto. The petition was denied because a town named Kleberg already appeared on the post office list, so residents then chose the name "Alice", in honor of Alice Gertrudis King Kleberg, Kleberg's wife and the daughter of Richard and Henrietta King. The Alice post office opened for business in 1888. Within a few years, the remaining residents of Collins moved to Alice, which was by then a thriving community.