The community of Allenhurst evolved around 1903-1904 when Byers H. Allen built a sawmill in the Sand Hills area of Liberty County. In 1909 a post office was established, and the town was named Allenhurst in honor of Mr. Allen.
Allenhurst was built largely by the Dunlevie Lumber Company. Although most of the 100 houses owned by the Lumber Company have been torn down or destroyed by fire, six still remain.
One of the main features of Allenhurst is the Miller Pasture, a 1,400 acre tract that was passed down through the D.C. Miller Estate, the original owners of the land. The land is now held by The Miller Pasture Trust, which will keep the land in its natural state.