Residents of Palco can find SR 18 running on a diagonal at the Northeast corner of the town.

In its early stages this town moved around a lot. It was first settled as Cresson by several men from Pennsylvania. When rumors circulated that the Union Pacific railroad was building a new railroad bypassing Cresson; people and business men relocated to where they thought the line would be constructed, calling the new place New Cresson. Unfortunately the railroad was built near the previous town of Cresson. Enterprising businessmen took their belongings, families and even buildings to the railroad site in the fall of 1888 and named the new town Palco.