The population of Coal City (zip 4742) is 725 people. Businesses began moving from Stockton to Coal City once their post office was established. In 1879, the Stockton Post Office closed. The completion of Cincinnati's Terre Haute & railroad through Coal City made it prosper.
By 1881, the city's plot had almost doubled to 204 lots. It became a good trading and shipping point located in one of the richest coal deposits in Indiana. Cincinnati's Terre Haute & Railroad was soon succeeded by the Terre Haute & Southeastern Railroad. Coal City was established in 1875 a couple of miles west of Stockton, mainly in the southwest quarter of Section 11, City 9 to the north, Cordillera 6 to the west, which consisted of 104 lots.
Compared to other cities in Indiana, housing is relatively scarce and expensive, and some people who come from other places may find good jobs that are scarce.
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