Formed in January 1926 as Iolotan Raion, its location is in Merv District of the Turkmen Soviet Socialist Republic.

In July the same year, Merv District is abolished, and as a result Iolotan became directly subordinate to the Turkmen SSR.

In December 1970, Iolotan rejoins the restored Mary Oblast that was previously abolished in 1963.

Atanyyazow attributes the name to the settlement's location on the Silk Road between ancient Merv and Herat.

The words ýol and öten mean "road" and "past" in Turkmen, respectively, i.e., "a place to cross".