The town was founded in 1900 when the Northwest Improvement Company, a subsidiary of Northern Pacific Railway, started the Melmont coal mine.

[2] The coal was used exclusively for use by Northern Pacific, and when they switched from steam locomotives to diesel and electric models, the economic base of the town was destroyed.

[4][5] In 1915, the Melmont Post Office was closed, and mail service to the town was done through Fairfax.

The last resident of Melmont was Andrew Montleon, who lived in the remaining basement of the second schoolhouse.

[7] In 1920, the Melmont schoolhouse (the second one built) was torn down after Steven Poch bought it to use the lumber to build his own home.