Copperas Cove's fortunes were greatly improved when, in 1882, the Gulf, Colorado and Santa Fe Railway expanded into the region. Local resident Jesse M. Clements lobbied to obtain train service and provided the railroad company with the necessary right-of-way about two miles northeast of town. Residents soon moved to a new set of streets laid out by the company's engineer, E.F. Batte. The train depot at Copperas Cove served as the shipping point for farmers and ranchers in the area between Cowhouse Creek and the Lampasas River. Businesses opened to provide services for these area residents, including a steam gristmill-cotton gin, three hotels, a barber shop, and an opera house. Many of the town's early buildings remain to this day, focusing around the block of Avenue D between Main Street and 1st Street. By 1900, the population had reached 475, and residents voted to form their own school district. A private bank opened in 1906, and residents elected Jouett Allin their first mayor in 1913. The town continued to prosper over the coming years, depending largely on local agriculture, of which cotton played a dominant role. Copperas Cove reached a then-peak population of 600 in 1929, but entered a state of decline with the onset of the Great Depression. During the 1930s, the local bank failed, several businesses closed, and many people left to look for work in other areas. By 1940, only 356 people remained.