Rancher H. H. Halsell sold the land one mile west of Fort Supply to territorial legislator James P. Gandy. Gandy hired surveyors to plat the land for a town site and founded the town of Supply in 1903. He moved most of the original buildings of Supply from the recently failed town of Fitzgerald. The Government established the first post office for the town of Supply on 12 May 1903. In the early years, area farmers and ranchers centered their economic trade around the town.