The earliest business in Farr West was built in 1862. It was called the Prairie House, and was a tavern that primarily served travelers who were on their way to the gold mines in Montana. In 1869 the Union Pacific Railroad laid a line through the eastern part of Farr West, a line later called the Ogden Shoreline. In 1874 William Rawson opened the first general merchandise store in the town. For many years, new businesses remained in operation only a relatively short time. Only in recent years have more permanent business activities become established. At the end of 1992 the city had issued licenses to sixty-one business, which range in size from the large Smith and Edwards variety store to small businesses operating from home sites.