Cerulean Springs was settled in 1792 by Robert Goodwin and had its first water mill built by Jesse Goodwin in 1797. The town had several notable events, including the establishment of the Cerulean Springs post office in 1824, the opening of the Cerulean Milling Co. in 1903, and the burning of the I.C.R.R. Depot by Night Riders in 1908. The Cerulean Springs Hotel was a popular health resort from 1817 to 1925, when it burned down. The hotel had several owners and underwent several renovations, including the construction of a three-story annex in 1901.