Located on historical Preston Point, or the gateway to Texoma, Lighthouse's history goes back to the 1800's. Preston, Texas, also known as Preston Bend was a prominent town located on the Red River in North Texas. It grew in the 1800s at the intersection of several military and trade roads and was an important crossing on the Shawnee cattle trail.
Preston lost prominence after the MK&T railroad passed the town to the east, leading to a decline in traveler and cattle drive traffic. It is now a ghost town and the former town site, located near Pottsboro, Grayson County, Texas, is submerged beneath under the waters of Lake Texoma.
The United States Congress authorized Lake Texoma's construction by the Flood Control Act approved June 28, 1938, (Public Law 75-791) for flood control and generation of hydroelectric power. The lake's area submerged the Preston townsite. United States Army Corps of Engineers bought all the land in the area in the late 1930s for Lake Texoma.
After filling Lake Texoma the only thing left from Preston is the cemetery, which was on high ground overlooking the town. The cemetery was expanded with a new section when Lake Texoma was created. Some of the existing graves that were to be under the lake were moved to the new section of the cemetery.
Preston Point is the peninsula in Lake Texoma that was the high ground overlooking the town of Preston. An unincorporated community named Preston exists on this peninsula.