Degerfors has traditionally been an industrial community closely connected to the large ironworks, associated with members of the Camitz family.

The settlement (originally called Johannelund) grew up around this industry and got the status of a municipalsamhälle (a type of borough within a municipality) in 1912.

[5][6] The site was initially proposed to be the dry remnant of a dramatic river or waterfall comparable to Niagara Falls.

[5][7] Research by Curt Fredén cast well founded doubts on this view,[5][6] with the final demise being a 1981 study by Birgitta Ericsson et al showing that the giant's kettles in the area are older than the Ancylus Lake.

Despite the relatively small size of the town, Degerfors has always had strong local support, and played a total of 29 years in the highest division Allsvenskan.