Payne Springs is a small town on the east side of Cedar Creek Lake in Henderson County, East Texas. The community traces its name to William K. Payne, a Confederate veteran who settled in the area around 1850, and it today operates as a Type A General Law municipality with a mayor and city council. The 2020 census counted 741 residents, down slightly from 767 in 2010. Cedar Creek Lake defines the town's setting and its appeal. Payne Springs occupies roughly 2.1 square miles with a mix of lakefront, off-lake residential, agricultural, and small business areas. The shoreline gives the community a resort-flavored, recreational character distinct from inland East Texas farm towns, while the surrounding countryside keeps it unmistakably rural. Lakefront homes and lots face the water, while the interior of town holds more modest residential and agricultural parcels. The town sits within a cluster of small lake-area communities that includes Enchanted Oaks, Eustace, Caney City, Gun Barrel City, Seven Points, and Mabank. Together they form the Cedar Creek Lake area, one of North and East Texas's established lake-country destinations, drawing anglers, boaters, and seasonal visitors throughout the year. Mabank, a short drive south on State Highway 198, serves as the area's principal commercial hub. Payne Springs suits buyers seeking waterfront or near-water property, a slower pace, and fishing and boating access without leaving a functioning small town. It works equally well as a full-time home base or a weekend lake retreat, given its reach from the Dallas-Fort Worth area to the west. The town's rural setting and lakeside orientation give it a relaxed, outdoors-first character that distinguishes it from the region's inland farm communities.