The charter for McAllaster was filed on February 12, 1887. There was much promotion for the town in the local newspaper, "The McAllaster Herald". The newspaper was sent all over the United States claiming this township was a Garden of Eden. Great things were expected of McAllaster as it was on the main line of the Union Pacific Railroad. The original plan was to build North and Second branches, with McAllaster being the Junction. This dream never came to be.