John Lee Wallace and his wife, Malvina Gillespie, both belonged to prominent families in Kentucky's horse country near Lexington. Although he was not Robert E. Lee's nephew, as is often claimed, he was a distant cousin. Other distinguished family connections included descent from Pilgrim Father, Isaac Allerton, and kinship to President Zachary Taylor and President James Madison.
The Wallaces arrived in Texas in the mid-1850s along with several other family members who settled in Travis and Blanco counties. Along with the Pounds and Mosses, they are regarded as the founding families of Dripping Springs. First to put down roots were John L. and Indiana (Ward) Moss, followed by John L. & Malvina (Gillespie) Wallace, and, a few months later, Dr. Joseph M. and Sarah (Ward) Pound who had originally settled about 10 miles further west.
It may well be true that the burial of the Wallaces' little son, John Lee Wallace Jr, could not take place at the top of what is known as Wallace Mountain because of a rainstorm. But the intended spot would not have been where the Wallace Mountain Cemetery was founded in 1881. At the time, it was on Dr. W.H. Howard's land, with the boundary line running between the two current cemeteries. Of the Wallace family, only John Lee Wallace; his infant son, John Lee Jr.; and his daughter, Mattie (Wallace) Seal, who died in her early 20s, are buried in the Wallace Family Cemetery. His wife, Malvina (Gillespie) Wallace, rests in their daughter, Carrie (Wallace) Voigt's family plot in San Marcos Cemetery.
During the Civil War, John Lee Wallace was the postmaster for Dripping Springs, but is not found in official list of U.S. postmasters, having only held the position under the Confederacy. He served in Captain W.H.D. Carrington's company, Lt. Col. G.H. Giddings' Regiment, part of Col J. S. "RIP" Ford's 2nd Texas Cavalry, losing his horse in battle near Brownsville in August 1864.