On March 9, 1893, the Pecos Valley Town Company, incorporated in 1889 by Joseph C. Lea, Charles B. Eddy, Arthur A. Mermod, Patrick F. Garret and Edgar B. Bronson, purchased the land upon which the future town of Hagerman would be founded.
In 1894, J.J. (James John) Hagerman, who was building the railroad from Eddy (Carlsbad) to Roswell, had become president of the Pecos Valley Town Company and had decided on the location of the town. The town site is situated in the southeast quarter of Section 10, Township 14, south of Range 26 east of the New Mexico Principal Meridian (near the junction of the Felix and Pecos Rivers, about halfway between Roswell and Artesia). Mr. Hagerman had the land surveyed and platted; it contained 67.02 acres.
The post office was also established in 1894 as Felix, New Mexico; the name was changed to Hagerman on February 27, 1905.
In 1905, the residents petitioned the Chaves County Commissioners for the incorporation of Hagerman. On the 5th day of July 1905, Hagerman was declared and incorporated town.
An election was held and the following trustees were elected: N.J. Fritz (mayor), Edward C. Miller, M.C. Moore, J.W. Langford and O.R. Tanner.