Palmer began in 1916 as a railway station on the Matanuska branch of the Alaska Railroad. In 1935, during the Great Depression, the Federal Emergency Relief Administration, one of President Franklin D. Roosevelt’s New Deal projects, established the Matanuska Colony.

From Michigan, Wisconsin and Minnesota, 203 families traveled by train and ship to reach the fledgling colony, arriving in the summer of 1935. Upon their arrival they were housed in a tent city during their first Alaskan summer. Each family drew lots for 40 acre tracts and their farming adventure began in earnest.

The failure rate was high, but many of their descendants still live in the area. While the colonists had varying degrees of success with farming, Palmer is the only Alaskan Community that developed from an agricultural lifestyle.

In addition to an agrarian heritage, the colony families brought with them small town values, institutional structures, and a well planned city center. Many of the structures built are now in a nationally recognized historic district. Construction of the statewide road system and the rapid development of Anchorage have fueled growth around Palmer. Many Palmer residents commute to work in Anchorage.

Gold mining was important in Hatcher Pass north of Palmer. Independence Mine State Historical Park is now a popular attraction. The city of Palmer was formed in 1951. Construction of the statewide road system and the rapid development of Anchorage have fueled growth in the Mat-Su valley.