The Best Little Whorehouse in Texas is based on a true story of the closure of a Chicken Ranch brothel and its owner, a one Edna Milton (renamed Mona Stangley for the show). This particular Chicken Ranch was founded in 1844 and was to be found in the small town of La Grange, Gilbert, Texas. The title of 'The Chicken Ranch' was given to the Whorehouse during the Depression when Madam Miss Jessie (the owner at that time) decided that customers could bring one chicken per lay for payment instead of the customary $3.

During its existence, business was conducted in a very un-obtrusive but professional manner. The Ranch existed peacefully with its neighbours, the community at large, and with the law.

In 1952, a young woman (23) from Oklahoma arrived at the Chicken Ranch. Her name was Edna Milton. She may have been young but Jessie could see that she was quite capable of looking after herself and the other girls. It wasn't surprising then that not long after, Jessie was handing the reigns over to Edna and it didn't take Edna long to show what she could do for the Chicken Ranch.

Edna later became one of the town's largest philanthropists, through giving a lot of money to many local civic causes. She was able to do this because the Chicken Ranch was making a gross income in excess of $500,000 at its peak in the 1960's. It was forbidden for Edna's girls to have any social contact with the townsfolk, this was for obvious reasons but it also ensured their safety. As did Edna's 'friendly' relationship with Sheriff T.J. Flournoy (played as Ed Earl in the show) at that time. There were many nightly calls between Edna and the sheriff through the direct-line from his office to the 'Chicken Ranch' that he requested to be installed.

After a week-long exposé on the ranch in late summer of 1973 by a consumer-affairs reporter for KTRK-TV in Houston called Marvin Zindler (Melvin P. Thorpe in the show), who claimed that the house was a breeding place for organized crime, corruption and all-manner of other illegal activities, the Chicken Ranch was closed down. This happened even after the Governor of Texas, Dolph Briscoe a few months previous, had conducted a two-month surveillance of the house. During which time, no connection to any criminal activities or organized crime had been found.

The Chicken Ranch, which was known to be the most successful and oldest, continually operating brothel in the nation, finally closed its doors on August 1, 1973.