Perkins capitalized on the area's need for legal liquor by purchasing an addition twenty-seven acres of land adjacent to his farm on the outskirts of Abilene and then pushing for its incorporation. Calling the town "Impact" after his advertising business, twenty-nine signatures of local residents were collected and it was incorporated in 1960.
Soon after, the town's citizens - consisting mostly of Perkins' family and friends - voted 18 to 2 to permit liquor sales. Abilene lawyers immediately filed motions to oppose the town's incorporation, but the a Texas Supreme Court ruling in 1963 upheld Impact's incorporation and its right to sell liquor.
Two liquor stores opened in Impact in 1963, and the first month's sales were $463,000 (equivalent to roughly $3 million in 2006). With the new found revenues, the town's roads were paved and lighted, garbage pickup was introduced, and a policeman was hired.
Impact remained the only wholly wet town in Taylor County until 1978, when Abilene voters narrowly legalized (by a 131-vote margin) liquor sales in the city. With that vote, Impact lost its reason for being. The liquor stores in Impact soon closed and the community became just another suburb of Abilene. Dallas Perkins, Jr., became the Coach of Debating in Harvard College in 1980 and remains in that position as of 2007.
Impact has been and still is one of the smallest incorporated communities in Texas. Its population peaked at 61 in 1970 and had declined to 39 by 2000.
There were 14 households out of which 35.7% had children under the age of 18 living with them, 42.9% were married couples living together, 21.4% had a female householder with no husband present, and 28.6% were non-families. 28.6% of all households were made up of individuals and 21.4% had someone living alone who was 65 years of age or older. The average household size was 2.79 and the average family size was 3.30.
In the town the population was spread out with 35.9% under the age of 18, 15.4% from 18 to 24, 15.4% from 25 to 44, 15.4% from 45 to 64, and 17.9% who were 65 years of age or older. The median age was 25 years. For every 100 females there were 129.4 males. For every 100 females age 18 and over, there were 92.3 males.
The median income for a household in the town was $23,750, and the median income for a family was $23,750. Males had a median income of $31,250 versus $18,125 for females. The per capita income for the town was $12,488. There were 30.0% of families and 36.4% of the population living below the poverty line, including 28.6% of under eighteens and 20.0% of those over 64.