Before the 19th century, the Lethbridge area was populated by several First Nations at various times. The Blackfoot referred to the area as Aksaysim ("steep banks"), Mek-kio-towaghs ("painted rock"), Assini-etomochi ("where we slaughtered the Cree") and Sik-ooh-kotok ("coal"). The Sarcee referred to it as Chadish-kashi ("black/rocks"), the Crease Kuskusukisay-guni ("black/rocks"), and the Nakoda (Stoney) as Ipubin-saba-akabin("digging coal"). The Kutenai people referred to it as ʔa•kwum.
After the US Army stopped alcohol trading with the Blackfeet Nation in Montana in 1869, traders John J. Healy and Alfred B. Hamilton started a whiskey trading post at Fort Hamilton, near the future site of Lethbridge. The post's nickname became Fort Whoop-Up. The whiskey trade led to the Cypress Hills massacre of many native Assiniboine in 1873. The North-West Mounted Police, sent to stop the trade and establish order, arrived at Fort Whoop-Up on 9 October 1874. They managed the post for the next 12 years.
Lethbridge's economy developed from drift mines opened by Nicholas Sheran in 1874 and the North Western Coal and Navigation Company in 1882. North Western's president was William Lethbridge, from whom the city derives its name. By the turn of the century, the mines employed about 150 men and producing 300 tones of coal each day. In 1896, local collieries were the largest coal producers in the Northwest Territories, with production peaking during World War I. After the war, increasing oil and natural gas production gradually replaced coal production, and the last mine in Lethbridge closed in 1957.
The first rail line in Lethbridge was opened on 28 August 1885 by the Alberta Railway and Coal Company, which bought the North Western Coal and Navigation Company five years later. The rail industry's dependence on coal and the Canadian Pacific Railway's efforts to settle southern Alberta with immigrants boosted Lethbridge's economy. After the Canadian Pacific
