The town is named for Colonel Samuel Drumheller, who bought land in 1910 and started coal mining operations here in 1911. Drumheller became a railway station in 1912, a village in 1913, a town in 1916 and a city in 1930.
During the peak of the coal era (1920s) Drumheller's population exploded to approximately 3,000, becoming a city in 1930. Once Western Canada's largest coal producer, Drumheller now contributes to a vibrant energy sector and boasts Alberta's second largest natural gas deposit, the West Drumheller Field.
To benefit from Provincial and Federal grants, the City of Drumheller dropped its city status in favour of town status when it amalgamated with the Municipal District (M.D.) of Badlands No. 7 on January 1, 1998. As a result of the amalgamation, Drumheller became Alberta’s largest town in terms of area at 111 square kilometres (43 sq mi).
The 1998 amalgamation with the M.D. of Badlands No. 7 resulted in Drumheller absorbing seven unincorporated communities that were previously under the jurisdiction of the M.D. – Aerial, Cambria, East Coulee, Lehigh, Nacmine, Rosedale and Wayne. Drumheller also previously absorbed the sizeable communities of Midland vale, Newcastle and North Drumheller during annexations while under city status. Eladesor, Knee hill, Rosedale Station, Western Monarch and Willow Creek are numerous other localities within Drumheller that were absorbed through past annexations or its eventual amalgamation with the M.D. of Badlands No. 7.
In total, Drumheller has absorbed at least 13 other communities in its history, some of which are now recognized as neighbourhoods or districts within the town.
Drumheller has been the filming location for more than 50 commercials, television and cinematic productions including Running Brave, Myth Quest, Unforgiving, ABC's miniseries Dream keeper and TNT's miniseries Into the West
