Built in 1878 in a heavily forested area, the town was first called Forest City. As soon as the number of houses, hotels and stores warranted, the town was incorporated with a new name, St. Elmo.

At first, the town was of high moral character. When the population passed the 2000 number, it took on all the trappings of a single male population with saloons, dance hall, bawdy houses and the like.

St. Elmo is Colorado's best preserved ghost town.