Caney City is a small lakeside town in Henderson County, in East Texas, on the shore of Cedar Creek Lake. The lake, a large reservoir on Cedar Creek built in the mid-1960s, transformed the area from rural East Texas countryside into a recreation destination, and Caney City grew as a residential community along its shore. The town incorporated in the early 1980s. With a population of roughly 190, Caney City is among the smaller incorporated communities in Henderson County. State Highway 198 passes along the city's eastern side, connecting it south to Malakoff and north to Mabank, while Athens, the county seat, lies about twelve miles to the east. The city covers a little more than a square mile of mostly residential land near the water. Cedar Creek Lake defines life in Caney City. The reservoir is one of the most popular boating and fishing lakes in East Texas, known for white and hybrid striped bass along with largemouth bass, catfish, and crappie. Marinas, boat ramps, and lakeside amenities line the shoreline throughout the area, and the town's location gives residents easy access to the water. The town's housing is a mix of modest older homes and newer construction, much of it oriented toward lake recreation, with a blend of year-round residents and weekend and seasonal homes common throughout the Cedar Creek Lake area. Public school students attend the Malakoff Independent School District, based in the neighboring town of Malakoff. For shopping, healthcare, and larger services, residents turn to Athens, Mabank, and the nearby Cedar Creek Lake communities. Caney City offers a quiet, low-key residential setting in the heart of one of East Texas' busiest lake regions.