Montgomery is a city located in Montgomery County, Texas. As of the 2000 census, the city had a total population of 489. It is the birthplace of the Lone Star Flag of Texas. The town of Montgomery was founded in the middle of the Lake Creek Settlement by W. W. Shepperd in July, 1837 on 200 acres (0.81 km) of land that had originally been part of the John Corner League. Montgomery became the first county seat of Montgomery County shortly after the county was created on December 14, 1837.