The old Nye City was formed in 1887 when the Minneapolis Mining and Smelting Company bought most of the mining claims and began operations on a large scale. For a period of time it was one of the liveliest mining camps in Montana. Prior to 1887 only original locators of the mining claims and prospectors like Jack Nye, Joseph (Skookum Joe) Anderson, Ansel S. Hubble, William Hamilton, the Hedges brothers, M.M. & R.L. McDonald were in the area. Named in honor of Jack Nye the town sprang up quickly with miners and laborers pouring in from all areas. The town site was platted and grew to around six hundred people with two stores, about six restaurants, eleven saloons and other businesses. Soon it was found that the town was on the Crow Indian reservation making it impossible to acquire the title to the mining claims making the Minneapolis Mining & Smelting Company close. After everyone disappeared the post office was moved up to the present location.