Palmetto was founded and established in 1866, when three prospectors discovered silver deposits north of the site. The miners named the camp Palmetto, mistakenly thinking that nearby Joshua trees were a relative of the palmetto tree. A 12-stamp mill was built at the settlement, but not enough silver ore was mined to keep the mill running.[3]
Although the town was abandoned at a year later, a revival occurred in 1906 when mines were reopened. People and businesses rushed back to town. Over 200 tents were put up on a town site one-half mile (0.8 km) west of Palmetto. A commercial street was laid out with: stores, markets, feed yards, restaurants, lumber companies, saloons and doctors' offices. The mines soon declined, and in the autumn of 1906, miners abandoned the town.[3]
In 1920, another revival occurred, and a mill was built. The town eventually declined. All that stands today are the remains of old buildings.[4]
The Palmetto post office was active from April 24, 1888 until June 7, 1894 and from December 16, 1905 until December 31, 1907.[1]