"In 1874 soldiers from Camp Verde were stationed at an adobe house, but at that time there was no name for the present Cottonwood (where the house existed). As settlers moved in and the community developed, it took its name from a circle of sixteen large cottonwoods growing about one-quarter of a mile away from the Verde River. The place was unhealthful. Malaria and dysentry were severe problems as mosquitos rose in thick clouds from stagnant pools left by receding floods. Such quinine as was available sold at $4.00 an ounce and could be bought only when it was in surplus at Camp Verde. Nevertheless, by 1879, several families had settled there, including the Nichols, Van Deerens, Hawkins, and Strahans. It is a curious fact that each family had nine children. The adobe building formerly used by soldiers became a school house. Today Cottonwood is a thriving community. P.O. est March 6, 1879, William H. Michael pm.

Cottonwood was founded in 1879. The settlers at that time were farmers and ranchers. Between 1915-1917 Cottonwood began building their town. By March of 1917 Cottonwood began booming. Cottonwood appealed to the more venturesome, those who wanted their own home and business. There was a certain reputation for lawlessness. Some who settled in Cottonwood were run out of the nearby company towns. Heavy bootlegging was abound, therefore attracting other non law abiding citizens as well as law abiding from other towns. Cottonwood was known to have the best bootlegging within hundreds of miles, attracting citizens from Los Angeles, Phoenix and closer-to-home folks.

According to statistics compiled for the State Directory in the late teens, Cottonwood was represented by 64 businessmen who operated 4 general mercantile stores, 5 stores handling dry goods, 3 restaurants, 1 barbershop, 1 movie picture theater, 1 amusement hall, 1 drugstore, bakery, confectionery, lumber yard, 2 garages, 2 blacksmiths, butcher shop, furniture store, 2 shoe shops, 7 pool halls, service station, ice plant, jewelry shop, 2 hotels, cleaning shop, root beer stand, novelty store and ice cream parlor. The AZ power had a temporary office. Cottonwood proper had 300 residents.   By the 1920’s  there was not another town in the United States that could boast of so many businesses for a population of about 1000 residents.  Cottonwood was called the 'Biggest Little Town in Arizona'.

THE BIGGEST LITTLE TOWN IN ARIZONA’