The Alticane area in Saskatchewan's prairies began attracting homesteaders during the early 20th-century settlement boom, with Ukrainian immigrants arriving from Sokal county in western Ukraine starting in 1907. These pioneers, including figures such as Wasyi Ivanchyna, Ivan Koshliy, and Wasyi Dubyk, cleared land for mixed farming in the aspen parkland region, contributing to the expansion of wheat production across the province. Their efforts laid the foundation for community development, supported by the Dominion Lands Act's homesteading policies that encouraged settlement on 160-acre plots.

By 1913, the district had formalized its identity with the opening of a post office on February 1, approximately two miles southwest of the later town site. The first postmaster, Alex McKie, named it Alticane after his hometown in Scotland, marking a key administrative milestone for the scattered farms. This post office served as a vital hub for mail and supplies amid the influx of European settlers drawn to the fertile prairies for grain farming.

In 1916, Ukrainian settlers constructed their first small wooden church dedicated to St. John the Baptist, reflecting the community's growing cultural and spiritual cohesion. The arrival of the Canadian National Railway branch line in 1928, connecting Speers to Mayfair, spurred further growth by relocating the post office to the new rail siding and establishing Alticane as an official hamlet. This infrastructure facilitated the transport of wheat and goods, boosting local farms during the 1920s peak of prairie expansion.

The decline of Alticane began in earnest during the mid-20th century, influenced by broader economic shifts in rural Saskatchewan. The Great Depression of the 1930s severely impacted the area's early agricultural viability, exacerbating challenges for small farming communities like Alticane by reducing crop yields and farm incomes across the province. Following World War II, mechanization of farming in the 1940s and 1950s dramatically reduced the need for rural labor, leading to farm consolidations and outmigration from hamlets such as Alticane. By the 1950s, Alticane still supported a school, blacksmith shop, hotel, hall, restaurants, stores, gas stations, and grain elevators, but these amenities dwindled as the population fell.

The closure of local infrastructure accelerated the transition. Alticane's school, part of the nearby Oscar Lake district, remained operational until 1966, after which students were bused to larger centers. The Canadian National Railway (CNR) branch line, which had spurred the community's growth since its arrival in 1928, contributed to its isolation as usage declined; by the 1970s, the hamlet was struggling with fewer than a dozen residents, and the line was eventually abandoned in the 2010s. Although Alticane was never formally incorporated as a village, its informal status as a hamlet effectively dissolved around this period, with businesses shuttering and the post office closing in the late 1990s.