Caney City is a town in Henderson County, Texas, United States. The population was 187 at the 2020 census. Caney City is located in western Henderson County. It occupies a peninsula on the eastern side of Cedar Creek Reservoir, between two arms of the lake: Clear Creek to the north and Caney Creek to the south. The city of Log Cabin borders Caney …Caney City is a town in Henderson County, Texas, United States. The population was 187 at the 2020 census. Caney City is located in western Henderson County. It occupies a peninsula on the eastern side of Cedar Creek Reservoir, between two arms of the lake: Clear Creek to the north and Caney Creek to the south. The city of Log Cabin borders Caney City to the northeast. Texas State Highway 198 passes through the eastern side of the city, leading north 14 miles to Mabank and south 3 miles to Malakoff. Athens, the Henderson county seat, is 12 miles east of Caney City.