The fictional Sage was founded in late 1867 by Samuel Rowlings and Thomas Barry.
They attended Baylor University and fought in the Civil War. After the war they traveled sometimes together, sometimes a part. Their last travels took them to Europe. Eventually, the desire for the wide open spaces of Texas drove them back home. Their experiences in the war and from traveling made them want to create a different kind of place to live.
They acquired land northeast of Burnet, Texas. Barry took the northern section for the Twisted Bar Ranch, Rowlings took the southern parcel for the Stony Ranch. They established the town of Sage between the north and south ranch.
In 1870, they established A. E. Johnson College west of Sage.