The history of Laurel began when settlers began making their homes in the vicinity in 1879. There was a section house built that served as a depot and post office, situated about where Hobo Hill is, or near the center of the present railroad yards east of Laurel. The railroad pushed closer to Laurel from the east, up the Yellowstone Valley during the summer of 1882. Up to this time, there were about 200 people in the community. With the advent of the railroad, the population grew to 368 in 1900, 806 in 1910, and 2,338 in 1920.