The community was laid in 1881-1882 by the Jefferson City, Lebanon and Southwestern Railroad which became the Missouri Pacific Railroad. It was originally called Proctor, after James G. Proctor, who was an early settler. The name was rejected because there was another Procter in Missouri. It was then changed to Cove because of its semicircular shape. That name was also rejected because of another similar name in the state. Chester was suggested but again was rejected because there was another Chester on the rail line. Ultimately, the railroad company imposed the name "Olean," after Olean, New York, apparently on a lark, as no documentation survives explaining any reasoning for choosing a city with no connections to the town in Missouri, which in turn had no connection to oil. Attribution to Dr. W.S. Allee appear not to be true, as Allee never lived in or visited New York State.