It was named Fox Creek after the watercourse adjacent to the western edge of the townsite, which drains towards Iosegun Lake to the north.

[8] At the same time, a townsite for another future community was surveyed to the north of Fox Creek on Iosegun Lake's eastern shore.

[8] Residents began settling in Fox Creek shortly after Highway 43 officially opened in the fall of 1955, attracted by opportunities in the forestry and oil and gas exploration industries.

Fox Creek's first two roadways, 1 Street West (the initial stage of Kaybob Drive) and Highway Avenue, were also constructed in 1956.

[10] Under the signature of Premier Ernest Manning on July 19, 1967, the Province of Alberta incorporated the community as the New Town of Fox Creek.

The members of town council are Mayor Sheila Gilmour and councillors Meesha Bainton, Brenda Burridge, Eric Scott Doran, Jim Hailes, Kerri Hudson, and Kimberly Ann Norman.

[3] Fox Creek is located within the Central Peace-Notley provincial electoral district, represented by Todd Loewen of the United Conservative Party.

[3] At the federal level, Fox Creek is located within the Peace River—Westlock electoral district and is represented by Conservative Arnold Viersen.

Fox Creek's economy is driven by the resource industry with oil and gas playing the primary role.

3 and Kaybob Amalgamated), a sweet gas processing plant (West Fox Creek), and numerous pipelines in the area.

Its role in Fox Creek's economy was threatened after a fire destroyed the area's lone sawmill – owned and operated by Millar Western Forest Products Ltd. – on August 29, 2008.

[26] After nearly two years of uncertainty about forestry's re-emergence in the local economy, Millar Western announced on June 18, 2010 that it would rebuild the Fox Creek sawmill.