In 1880 the Gulf, Colorado and Santa Fe Railway built a station a mile south of Clifton. Merchants moved their businesses closer to the railroad station, and the town thrived as a business and trade center. The Merchant Exchange and Flour Mill, the first steam flour mill in the Bosque valley, was established in 1887 or 1888. The "Clifton Record", a newspaper that began publishing in 1895 under the ownership of W. C. O'Brian, continued to serve the community. Clifton served as the county seat between 1890 and 1892. Clifton Lutheran College, later known as Clifton College, opened in 1896. The community was incorporated in 1901. An earlier attempt at incorporation in 1891 failed when the election results were declared invalid. A fire on December 23, 1906, destroyed a large portion of the business district, which was eventually rebuilt. The Clifton Volunteer Fire Department was organized in 1907. The town's need for a hospital was met by Dr. V. D. Goodall and Dr. S. L. Witcher, who formed the Goodall-Witcher Hospital in 1938, which is still operating today along with the Clifton Clinic. The Lutheran Sunset Home for the elderly was established in Clifton in 1954. In 1991, the Bosque River flooded much of the town due to torrential rains. The town had an estimated population of 204 in 1904 and 3,542 in 2000. It now has a population of 3,442.