In the mid-to-late 1870s, Métis families—including the Salois, Dumonts, and later the Laboucanes—migrated from places like Lac Sainte Anne and White Horse Plains to settle along the banks of the Battle River. Because of these early families, the area was locally known as Battle River Crossing, Salois's Settlement, Abraham's Settlement (after prominent Métis freighter Abraham Salois), or the Laboucane Settlement. In 1883, a Catholic mission church was built for Father Hippolyte Beillevaire. When Bishop Grandin visited the area, he named the settlement Duhamel to honor Joseph-Thomas Duhamel, the first Archbishop of Ottawa.

Built in 1883 using traditional "Red River Frame" (post-on-sill) construction, the St. Thomas Catholic Church is historically significant. It is the sole remaining Métis mission church left on its original site in Alberta. In 1885, church leaders used the space to counsel local Métis residents to remain peaceful during the Northwest Rebellion.

Duhamel shifted its geographical footprint multiple times to adapt to changing trade and transportation routes. The early trading post and settlement center shifted a few miles to align where modern Highway 21 crosses the Battle River. The biggest transformation came when the Grand Trunk Pacific Railway decided to build a line from Tofield to Calgary. Duhamel relocated to its current site to sit adjacent to the railway. To cross the deep valley, the railway constructed the Duhamel/Battle River rail bridge—at the time, known as the largest wooden trestle bridge in the world. It stretched an astonishing 3,972 feet (1,210 meters) long and stood 120 feet (32 meters) high. Due to railway route consolidations, the massive wooden marvel only stood for 14 years before it was dismantled.

The Post office opened on November 1, 1893, and closed on December 11 1958.