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State Highway 274 (SH 274) is a Texas state highway that runs from Kemp south to Trinidad along the western side of Cedar Creek Reservoir. The route was designated on August 1, 1938 along its current route.
Tool is located in northwestern Henderson County> on the west side of Cedar Creek Lake. Texas State Highway 274 is the main road through the city, leading northwest 4 miles (6 km) to Seven Points and southeast 9 miles (14 km) to Trinidad. Athens, the Henderson county seat, is 24 miles (39 km) by road to the southeast of Tool.
The community lies nearby the western front of the Cedar Creek Reservoir, on the Texas State Highway 274, between the cities of Tool and Trinidad. It has a cemetery and a church in the east. It has a cemetery and a church in the east.
FM 148 begins at an intersection with State Highway 274 near Kemp just west of Cedar Creek Reservoir. The highway runs in a west–east direction from SH 274 to FM 3094, making a 90-degree angle to the north towards Grays Prairie. FM 148 enters the town of Scurry, sharing a short overlap with State Highway 34.
A small part of the city extends north along Seven Points Road (Texas State Highway 274) into Kaufman County. Highway 274 leads north 9 miles (14 km) to Kemp and southeast 14 miles (23 km) to Trinidad. Texas State Highway 334 (East Cedar Creek Parkway) leads east from Seven Points across Cedar Creek Reservoir 4 miles (6 km) to Gun Barrel City.
The community was named for Sara Kemp, mother of Levi Noble, the first postmaster, and was officially established when the post office opened in 1851. The original townsite was located on present-day County Road 4023, 2 miles (3 km) south of present-day Texas State Highway 274. It grew slowly during its first thirty years.
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The community lies on the western shore of the Cedar Creek Reservoir, few km far from the Texas State Highway 274, between the cities of Tool and Trinidad. The residential area is concentrated mainly around the lakefront.