Pottsboro was founded as a rail stop by H. G. Potts in 1876. Pottsboro is a town in Grayson County, Texas, United States. The population was 1,579 at the 2000 census. It is part of the ShermanDenison Metropolitan Statistical Area. According to the United States Census Bureau, the town has a total area of 2.8square miles (7.3 square kilometers), all of it land.