Thompson Springs was named for E.W. Thompson, who lived near the springs and operated a sawmill to the north near the Book Cliffs. The town began life in the late nineteenth century as a station stop on the Denver and Rio Grande Western Railroad (D&RGW), which had been completed through the area in 1883. A post office at the site was established in 1890, under the name "Thompson's." (The official designation by the United States Postal Service is still "Thompson". The town was a community center for the small number of farmers and ranchers living in the inhospitable region, and it was also a prominent shipping point for cattle that were run in the Book Cliffs area. Stockmen from both San Juan and Grand counties used Thompson.