[6] The town was incorporated in 1911, and it originally had 200 residents, most of whom worked at the nearby Rosin coal mine.

Edward John Sanmann of York, Nebraska,[7] and his wife, Lauretta Mae (Rogers) of Bloomington, Nebraska,[8] moved to Lost Springs in 1948 where they lived and worked in the general store and assisted with running the town's post office.

Bicentennial Commission designated Lost Springs as the smallest incorporated town in America; its population was then eleven.

In 1983, Lost Springs became involved in a court battle with the Chicago and North Western Transportation Company.

The railroad, which ran adjacent to the town, attempted to seize 5.2 acres (2.1 ha) of land to build a 22-foot (6.7 m) railway embankment.

Lost Springs Mayor Leda Price alleged that the embankment, which would lie between the town and U.S.

[11] According to the United States Census Bureau, the town has a total area of 0.09 square miles (0.23 km2), all land.

The town experiences cold, dry winters and warm, slightly wet summers.