The area was first permanently settled in 1919 following the end of World War I. The earliest wave of residents consisted primarily of two groups. The first were WWI Veterans, returning from the war who sought quiet, land-grant opportunities to rebuild their lives. The second were farmers and families migrating northward from the neighboring province of Saskatchewan looking for fertile agricultural land in the bush country along the southern flanks of the Saddle Hills.

As the population grew through the 1920s and 1930s, the community established local infrastructure. Education began with the opening of the Blueberry Mountain School in 1929, with Miss Jean Walker serving as its first teacher. The Post Office opened on January 1, 1926. The first postmaster was George Mildrum, who held the position until 1946.

Like many rural Canadian outposts, the community faced severe financial hardships during the 1930s. School board records from 1933 show teachers accepting annual rates as low as $500, and fluctuating attendance occasionally forced temporary closures or tuition arrangements with nearby Spirit River. A new school and barn were constructed in 1937 on land donated by resident Dewey Keebler. Much of the labor was supplied by local families working off back taxes owed to the district.