The creek was named after George Mercer Dawson by a member of his land survey team when they passed through the area in August 1879.

Once a small farming community, Dawson Creek became a regional centre after the western terminus of the Northern Alberta Railways was extended there in 1932.

When the Canadian government began issuing homestead grants to settlers under the Dominion Lands Act in 1912, the pace of migration increased.

[4] After much speculation by land owners and investors, the Northern Alberta Railways built its western terminus 3 km (2 mi) from Dawson Creek.

In 1942, thousands of US Army personnel, engineers, and contractors poured into the city – the terminal of rail transport – to construct the Alaska Highway.

In February 1943, a major fire and explosion in a livery barn, packed with road-building supplies including dynamite, caused serious damage to the centre of town; five people were killed and 150 injured.

The next year, western Canada's largest propane gas plant was built[12] and federal government offices were established in town.

In 1958, the extension of the Pacific Great Eastern Railway to the Peace from Prince George was completed,[11] and the village was re-incorporated as a city.

[13] The city extended sewer and water lines to the location; however, the area was not developed and with the factory only half-built, L-P Canada abandoned its plans.

The city is in the British Columbia Peace Lowland ecosection of the Canadian Boreal Plains ecozone on the continental Interior Platform.

The economy of Dawson Creek is based on four major industries: agriculture, retail, tourism, and oil and gas.

The city is surrounded by the Agricultural Land Reserve, where the soil can support livestock and produces consistently good yields of quality grain and grass crops, such as canola, hay, oats, alfalfa, wheat, and sweet clover.

Because the grid contains many internal intersections with stop signs, traffic is forced onto two arterial roads: 8 Street going north–south and Alaska Avenue going southeast–northwest.

These two roads meet at a traffic circle where a metal statue marks the beginning of the Alaska Highway, and the Mile Zero Post is now located.

The Dawson Creek Airport, which services commercial flights by Central Mountain Air, was built in 1963; its 1,524 m (5,000 ft) runway was paved in 1966.

Service began when the Northern Alberta Railways (NAR) built its northwest terminus in the town and was extended in 1958 to Vancouver with a rail line through the Rocky Mountains.

Passenger rail service ended as commodity shipments of grains, oil and gas by-products, and forestry products became more important in the resource-based economy.

Established in 1975, Northern Lights College has a campus in Dawson Creek that houses its Regional Administration and two Centres of Excellence.

The park includes the Dawson Creek Art Gallery, which exhibits work by local artists and craftsmen.

The Station Museum, connected to the art gallery, displays artifacts and exhibits associated with the construction of the NAR railway and the Alaska Highway.

The South Peace Community Multiplex, a new facility completed in 2010, boasts a pool, indoor rodeo grounds and ice rink.

The city was once home to a North American Hockey League team, the Dawson Creek Rage, beginning in the 2010–11 season until it ceased operations in 2012 due to financial difficulties.

Current mayor Darcy Dober assumed the position following an election win over Council member Shaely Wilber in October 2022.

Previous mayors of the city have included Dale Bumstead (2013–2023), Mike Bernier (2008–2013), Calvin Kruk (2005–08), Wayne Dahlen (2001–05), Blair Lekstrom (1997–2001), Bill Kusk (1994–96) and Robert Trail (1967–75, 1982–93).

The city government administers infrastructure and services such as the provision of drinking water, sewage and garbage collection, fire protection, recreational facilities (including parks, trails and arenas), roadway maintenance, snow removal, library services, street lighting, public transportation, and the airport.

[54] City council appoints one person, usually the mayor, to serve as a board director with the Peace River Regional District.

Bernier has been the Member of the Legislative Assembly since 2013 provincial election and prior to that served as mayor of Dawson Creek between 2008 and 2013.

Before Bernier and Lekstrom, Peace River South was represented by Dawson Creek resident Jack Weisgerber.

Weisgerber was first elected in 1986 as a member of the Social Credit Party and served as the province's Minister of Native Affairs for three years.

[57] Federally, Dawson Creek is in the Prince George—Peace River—Northern Rockies riding, represented in the House of Commons of Canada by Conservative Party Member of Parliament Bob Zimmer.