The city of American Falls was first platted in the early 1880s. It was named for the waterfall on the Snake River near the settlement. During the last part of the 19th century, privately financed irrigation canals were created to sustain the emerging agriculture industry in southern Idaho and other parts of the west. The Carey act (1894) paved the way for private investment in irrigation projects. By 1895, the American Falls irrigation project came before the Idaho State Land Board. In 1902 the National Reclamation Act was signed into law and federal funds from the sale of public lands became available to create and maintain irrigation projects in the Western United States. The first power plant was built in 1902 on the falls and was acquired by the Idaho Power Company in 1916.