It was established between 1880 and 1891 by Dave Taylor and was named for Vashti Strahan, the first postmaster. A post office opened there in 1891, and by 1904 the community school registered sixty-nine students and employed two teachers. In the 1930s and 1940s Vashti remained relatively stable, but during the 1950s it entered a period of decline as farming became less profitable and improved roads encouraged greater mobility. The post office closed sometime after 1930. By the mid-1950s the population of Vashti stood at 140, a number that the community continued to report into the late 1980s.
Cattle raising, dairy farming, potterymaking, and fruit production are the area's major industries.
In the 1980s the Vashti community center was the hub of area social life. The Texas State Historical Association, 1997,1998,1999.