During the year 1912, Jenkins surveyed the Okeechobee town site, and the St. Lucy County Tribune remarked in it's July 26 issue that the town was "being laid out in a scientific manner."

The Kissimmee Valley Extension of the Florida East Coast Railway was completed from Kenansville, Florida   (which had been named in honor of  Henry Morrison Flagler's third wife Mary Lily Kenan Flagler, who was from Kenansville, North Carolina.),  down  through Fort Drum in 1913. 

A small depot was built at Fort Drum and several miles north another station was established and given the name Osawa. Some five miles southeast of Fort Drum the railroad constructed a station and gave it the name Hilola.

During 1912 and 1913 Okeechobee continued to grow. The March 7, 1913 issue of the St. Lucy County Tribune reported:

New buildings continue to go up here. Mr. Jernigan’s twelve room house is now well underway. Capt. H. H. Hancock’s new two story building is just being completed, now receiving its second coat of paint. Dr. Darrow’s splendid residence will be finished as fast as lumber can be had. Melville Raulerson’s new building will soon be completed. Smith Drawdy will begin to build a nice house in a few days. W. L. Bragg’s new residence is now finished.

W. L. Bragg, Mr. Hunt, the civil engineer, Peter Raulerson and H. H. Hancock rode out Tuesday afternoon to select a site for a cemetery for our town, and after examining several tracts of land decided the most suitable place for such purpose in the township is on the east side of Taylor Creek near Taylor Ford, Mr. Hunt will locate the grounds, make the plat and turn it in to the Okeechobee Company for their approval.

The site was described as a "beautiful, high ridge with tall pines, live oaks and other trees common to the country," the writer remarking that it was "a choice place for a burying ground." One of the oldest marked graves in the cemetery is that of William H. Raulerson who died January 6, 1914.

Work on the railroad continued and by September 1913, the clearing and grading of the right of way was reported to be within four miles of Okeechobee. But the railroad was not to be completed for some time.

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