In 1880, a merchant and Union scout named John Valentine Hargrove founded Siloam City. He owned land along Sager Creek. The area was fertile for agriculture, and the town soon began to develop as a sumner resort. Despite the lack of railroad facilities, the area remains a popular trading destination. Residents have long hoped for a railroad to come to Siloam City, which would make it a large, flourishing town.
The original plat of Siloam City was laid out by J. V. Hargroves. The Plat was changed in 1888 when the town expanded eastward. Logan Teague laid out East Siloam City. The area is now overwhelmingly white and was originally advertised as a sundown town. Despite the small ethnic makeup of the community, the town has a diverse range of cultures.
In 1900, Siloam Springs was a summer health resort. In addition to the springs, the town had a telephone company and city-owned utilities. There was a flourishing apple industry and commercial fruit crops. Siloam Springs' schools were open for grades one through eight, and officials expected high school grades to follow soon. In 1898, the Methodist Episcopal Church sponsored an institution in Siloam Springs that became the town's high school.
The city's population has grown significantly since 2000. The city now has more than a quarter of the population of neighboring Centerton. While the city has become larger and more diverse, Siloam Springs retains its small-town sensibilities. The Benton County Historical Society published a history of the area. For the past several decades, the Benton County Heritage Committee published a quarterly newspaper called the Benton County Pioneer.