As early as 1865, a camp was established here, and in the spring of 1866 Colonel W.H. Raymond and others laid out the townsite. Hiko, situated in the Pahranagat range of mountains, is an Indian expression for "white man's town." Raymond, with Eastern capital, purchased the machinery for a five stamp mill and had it shipped via the Colorado River to Callville, then hauled by oxen the 140 miles to this site. In November 1866, milling began on Pahranagat ores, and soon after Hiko became the first county seat of Lincoln County in March 1867. Raymond spent nearly $900,000 building roads, erecting dwellings, setting up the mill, prospecting, and mining before the enterprise failed. The mill was moved to Bullionville in 1870, and consequently Hiko declined in population and importance. The decline accelerated after the removal of the county government to Pioche in February 1871.