The name has many rumored origins, including that the original development in the 1950s was built on top of an old landfill, that the sandy soil and rolling hills of the area would cause foundation problems for anyone foolish to build there, that the houses in Idiot's Hill were roughly twice the price of comparable houses being constructed at the same time on the south side of Denton, that the streets are winding and not built in the more popular grid-style, and that a large number of professors working at TWU and UNT lived in the neighborhood.
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