The settlement started with only a general store, run by a man named Rudolph "Kare" Kremmling, built on the north side of Muddy Creek.

Kremmling was featured in W. Eugene Smith's photographic essay "Country Doctor" in the September 20, 1948, issue of LIFE.

[7] According to the United States Census Bureau, the town has a total area of 1.3 square miles (3.4 km2), all of it land.

This location provides valley access to Dillon, Colorado, and the ski resorts of Summit County, and Rabbit Ears Pass (renowned for world-class snowmobiling) at the Continental Divide, which then descends into Steamboat Springs.

This climate type is dominated by the winter season, a long, bitterly cold period with short, clear days, relatively little precipitation mostly in the form of snow, and low humidity.