The community derives its name from the DeBolt family, who were among the area's earliest pioneers. In 1919, Elbert and Laura DeBolt arrived from the state of Washington and established the community's first post office. The Post office opened on February 1, 1923.

Elbert's brother, George, along with his wife Virginia, opened a local "stopping place"—a primitive hotel and stable where travelers traversing the rugged region could stable their horses, grab a meal, and sleep for the night. A local thoroughfare "Virginia Avenue" is named in her honor. Throughout the 1920s, a wave of American and Eastern Canadian homesteaders arrived to farm and ranch the fertile Smoky River valley region. Forestry quickly followed agriculture. In the 1920s, homesteader John Bickell established an early bush mill on his family farm. This enterprise expanded over the decades into major regional wood operations, eventually helping launch Alberta's first plywood mill (Northern Plywoods) in 1953.