[5] The town lies long U.S. Route 183 and is named for the Arapaho Native American tribe.

The area containing present Arapaho was surveyed by federally-contracted surveyors in 1891, prior to the Cheyenne-Arapaho land opening on April 19, 1892.

On April 19, 1892, the expected inrush of settlers did materialize; by sundown some 400 claims had been posted.

The Oklahoma Territorial Legislature approved the incorporation on March 2, 1905 (Council Bill #80).

The county courthouse had been lost in an 1896 fire, and was not replaced until 1935, built with Public Works Administration funds.

[7] According to the United States Census Bureau, the town has a total area of 0.7 square miles (1.8 km2), all land.

The public education system of the town is combined with that of nearby Butler.