In 1903, a new townsite was laid out a few kilometres west of Blairmore, to service a new coal mine operated by the International Coal and Coke Company. Initial names of Paulson's Camp or McGillivray Hill were rejected by the post office, settling on Coleman (after the mother's maiden name of the president and mine owner A. C. Flumerfelt's wife, Ada, and the middle name of his youngest daughter, Norma Coleman Flumerfelt.
The Post Office opened on May 1, 1904.

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