KNOLLWOOD, TEXAS. Knollwood is located off Farm Road 131 about two miles north of Sherman in north central Grayson County. The community began as a mobile home park in 1970. In the mid-1980s the city incorporated, with the manufactured home subdivision known as Knollwood Village as the primary development. In 1990 the population was 205. That number grew to 375 in 2000. Knollwood contains a total area of 210 acres within its city limits and is governed by a mayor and council. Commercial businesses include a convenience store, liquor store, and restaurant. The city of Sherman provides water, fire, and ambulance services.