Carlene Carter and Susanna Clark wrote this song. Carter is the daughter of country music stalwarts June Carter and Carl Smith; Clark (who died in 2012) was the wife of Guy Clark
. They each began writing songs in the '70s - Clark composed the 1975 #12 country hit for Dottsy, "I'll Be Your San Antone Rose," and Carter was just getting started on her songwriting journey at the urging of her mother.
In a Songfacts interview with Carlene Carter
, she explained: "Susanna and I were great pals and she called me up one day and she said, 'I have a great line for a song: 'It's a quarter moon in a ten cent town.'' I said, 'Come over.' By the time she got there, I had already sorted out the whole music, the melody and everything, and had started on the first verse. Then the second verse was, 'It's a quarter moon in a ten cent town.' From that we made a song."