AMARILLO, TEXAS. Amarillo, commercial center of the Texas Panhandle, is in southern Potter County and extends into Randall County. When the Fort Worth and Denver City Railway began building across the Panhandle in 1887, a group of Colorado City merchants chose the site to establish stores.
In April 1887 J. T. Berry arrived from Abilene to plat the
new town. He chose a well-watered section of school land, located
along the FW&DC right-of-way in Potter County, which contained
a large playa known as Amarillo, or Wild Horse, Lake.
Text from the Handbook of Texas Online