Located in the tank-like depths of Palisade (12-Mile) Canyon, Palisade - first named Palisades - was surveyed and laid out by the Central Pacific Railroad in February, 1870. During the 1870's, it rivaled Elko and Carlin as a departure point on the Central Pacific for wagon, freight and stage lines to Mineral Hill, Eureka and Hamilton.

In October, 1875, with completion of Eureka and Palisade Railroad, Palisade became the northern terminus and operating headquarters for this little 90-mile narrow gauge line stretching southward to Eureka. Between 1875 and 1930, the town was the principal transfer and shipping point on the Central Pacific (Southern Pacific) and on the Western Pacific Railroad after its 1910 completion.

At its peak, the town boasted a population of 300. It was a self-contained community, and railroading was its business. There were passenger and freight stations, and sidings on both the Southern Pacific and Western Pacific Railroads, and a large ore transfer dock between the narrow gauge and standard gauge lines. All Eureka and Palisade (Eureka-Nevada after 1912) headquarter facilities were situated here.

After the little narrow gauge line ran its last train in September, 1938, Palisade went into a long decline. The post office was finally closed in 1962.