|Time zone||Central (CST)|
The town was formed in 1879 by John Bennett. In 1882, a post office was established under the name of Lenore, with the town later being renamed to Derby, after Bennett's hometown of Derby, England. Derby was renamed to Otley, after the village of Otley, Suffolk. By 1906, the town was renamed to Derby. In 2009, the population of Derby was estimated to be 50.
The town is served by the Pearsall Independent School District.