The town began as a real-estate-speculation in 1884. The investors Darwin C. Allen, and William B. Bradbury knew their project would succeed only if the town was connected to the mainline of the Southern Pacific. They contacted Frank Pixley; a man whom they knew was a friend of Leland Stanford. In 1886, Pixley joined with the original investors as a partner in the Pixley Townsite Company. The company purchased additional land in the vicinity. When The Southern Pacific extended its tracks to the Townsite, the town prospered. The terms of sale for the land was 25% down, the rest to be carried back for three years by the owners at 8 percent interest. The partners made a handsome profit.