In 1876, the American Hotel, which had been built some years previous, was closed, as it stood too far from the business center. It was moved nearby the railroad tracks and converted into a freight warehouse. Another hotel called the Pierce House, also burned that year and was never rebuilt.

The largest enterprise for the times was the Neosho Valley Fair, which was held here beginning in 1875. Four counties participated—Allen, Anderson, Greenwood and Woodson—and it had a decided influence in the development of the area. The fair gained a reputation far and wide and in 1879 the fair had as its guests President Rutherford B. Hayes and his wife, General William T. Sherman and a number of state officers.

Neosho Falls reached its peak population in with 1,200, but over the next several decades would continue to fall.

The post office remains open with the long abandoned high school/grade school looming behind it, Kathy Weiser, June, 2009.

In 1881, the grist mill was rebuilt, a substantial 30x36 two-story building taking the place of the old one. This mill had the capacity of 100 barrels of flour per day. The following year, the woolen mill was sold and never reopened for that purpose. However, 1882, also brought a new bank to town started in August by Haughwout & Goodrich.

By the turn of the century, Neosho Falls was described as one of the important towns of Woodson County. Located at the junction of the Atchison, Topeka & Santa Fe and the Missouri, Kansas & Texas railroads and on the Neosho River, it was a significant transportation center. At that time, the town boasted a number of retail businesses, a couple of banks, manufacturing facilities, which included flour mills, sawmills, and sorghum mills, and the Woodson County Post newspaper was still in circulation. By this time, oil had also been discovered in the vicinity, bringing with it much prosperity. In 1910, the town had a population of 571.

However, in the first half of the 20th century, Neosho Falls began to experience one set back after another. As electricity replaced water power, many of the mills were closed down and though a hydroelectric plant was built, its tenure was short and it was soon abandoned. The city was struck with a disastrous flood in 1926, which caused one death and tens of thousands of dollars in damage. The Depression hit the town, like so many others, very hard and Neosho Falls lost its only newspaper in the 1930s as well as its only bank. In 1935, the Santa Fe Railroad pulled out of the town, though it was still left with Missouri, Kansas & Texas Railway line and depot.

Prosperity returned to Neosho Falls when new oil was struck south of town in 1937. Two years later, anticipating a return to prosperity, a large new combined elementary and high school was built. But, for Neosho Falls, it wouldn’t last. A devastating flood destroyed much of the town in 1951 and soon afterwards, the oil reserves were depleted

In 1957 the Missouri, Kansas & Texas Railway pulled out of the area and the population continued to fall. The high school closed in 1961 and the grade school in 1969.

Today, this small burg has a population of only about 170 people. Though it is long past its thriving heydays, it continues to operate a post office, a church, a Senior Center, community building, and one retail business – a tavern.