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The small town of Coldwater is in Tate County, in northwestern Mississippi. The current town square of Coldwater is about two miles south of the Coldwater River, for which the town was named. However, the original town began as the village of Elm Grove in 1856, and was nearer to the river. When the Mississippi and Tennessee Railroad extended its tracks to the area in 1858, stores and other businesses opened up on both sides of the tracks, and Coldwater was incorporated in 1872. At that time, the town was in DeSoto County, and was about one square mile in size, with the railroad depot at the center. When Tate County was formed from pasts of DeSoto, Marshall, and Tunica counties, Coldwater became part of Tate County. During the early years, the town was plagued by periodic flooding, and when the Arkabutla Lake and Dam project was constructed in the early 1940s, the town was moved to about a mile and a half south of its original location, and parts of the original townsite are underwater year round. Coldwater is situated along Interstate Highway 55, north of Senatobia, west of Antioch, south of Love, and east of Arkabutla. Memphis, Tennessee is about thirty-five miles north of Coldwater.

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