The original name of the town was Diamond, because the crossing of the two railroad lines created a diamond shape. Soon the name of the town site was changed to Warman, named after Cy Warman (1855–1914), a journalist who followed and recorded the construction of the Canadian Northern Railway. In 1905, there was a huge influx of settlers so that in 1906, Warman was organized as a village. By 1927, the population had dropped to 148 people so that the village council decided to disorganize and return to hamlet status. For the next 35 years the affairs of the hamlet were handled by the Rural Municipality of Warman, who had their office in Warman.