William Sachse, who came to America from Herford, Prussia in 1840, was the founder of Sachse. At the age of 25, he arrived in Texas in 1845, securing 640 acres in Collin County. He later acquired an additional 5,000 acres. Sachse erected one of the first cotton mills and gins in the county. Ox and horsepower operated the gin until 1869, when a fire destroyed the gin and the animals were replaced with a steam-run plant.

In 1886, William Sachse gave 100 feet of right-of-way frontage through all of his holdings to the railroad. In exchange, the railroad built a depot and named the town Sachse. When the railroad built the depot, signs at both ends of the building read "Saxie". The mistake was later corrected reflecting the proper spelling, but as a result of the error, numerous legal documents during that time designated the town as "Saxie".

Also in the 1880s, the approximate 5000 acres owned by William Sachse decreased substantially when Mr. Sachse agreed to be bondsman for the Collin County tax collector. The county official fled with a large sum of county money, leaving Mr. Sachse heavily obligated. Needless to say, a large portion of valuable property was sold to raise cash quickly.

The first school in Sachse was built by the State of Texas on the corner of Sachse Road and Billingsley Street. The next school, located at Third and Dewitt Streets, was built in the early 1900s. It was a three-story building that was also used for town meetings. During the 1920s, a new one story red brick school house was built on the same site and remained the school house for Sachse children until the 1930s when the school was torn down. It was at this time that Sachse consolidated with the Garland Independent School District and the children were bused to attend school in Garland.

In the 1890s and early 1900s, the school house doubled on Sundays as the church. The Christians would meet in the "church" in the morning, the Methodists in the afternoon, until 1907 when the Methodists moved to the Pleasant Valley area and the new Christian Church was being built on 6^th Street. During the 1890s, William Sachse donated land adjoining the Christian Church site for what is today known as Sachse Cemetery, where he was buried when he passed away in December 1899. In the 1950s, the church was moved to its present location on Ben Davis Road. The bell from the cupola of the original church remains on the grounds of the present Sachse Christian Church building.

In 1910, the Sachse brothers owned the first automobiles in Sachse. They were such a rarity in the community that horseback riders would dismount and watch as approaching cars passed.

By the late 1920s, onions were competing with cotton as a major cash crop, and the cotton platform located next to the railroad was converted into an onion shed. At this time, the business district of Sachse included the train depot, two onion sheds, cattle pens, two blacksmith shops, two gins, the Kerley store, two general stores and a bank. With the growing popularity of the automobile came the rapid decline of passenger traffic by train. As a result, the train depot fell into disrepair and was torn down by the railroad. A tornado destroyed the roof of the onion shed west of Third Street and soon both sheds were torn down as well. No longer was the emphasis on cotton and onions, as the economy of Sachse was changing.