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About Mercedes,TX Mercedes is known as "The Queen City of the Valley" or "La Reina del Valle". Mercedes was founded September 15, 1907, by the American Rio Grande Land & Irrigation Company, and was incorporated March 8, 1909. It is one of the oldest towns in the Rio Grande Valley, and the city celebrated its centennial in 2007. The city was located in Capisallo Pasture, part of Capisallo Ranch owned by Jim Welles. This location was known as the Pear Orchard because of the vast numbers of prickly pear cactus growing there at that time.
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