Ranchester was established in 1894 and served as a shipping point for the McShane Tie Company, whose railroad ties were cut and hewn by hand in the Big Horn Mountains and then floated down a six mile flume to the Tongue River. The town grew rapidly with the extension of the railroad, and historic buildings reminiscent of the flourishing railroad era stand downtown along the tracks. Near the school is the Creative Playground, and the Little Blue School on the school grounds is a restored one-room country school containing many items actually used in teaching there. Connor Battlefield lies on the Tongue at the south edge of town.