The construction of Francois-Finlay Dam earned Nipawin the nickname the "Town of Two Lakes".

Nipawin is a Cree word meaning "a bed, or resting place" which referred to a low-lying area along the river now flooded by Codette Lake where First Nations women and children would camp and wait for the men to arrive.

In 1924 a branch-line of the Canadian Pacific Railway passed nearby, crossing the North Saskatchewan River over the Crooked Bridge, and the settlement was moved, building by building, to its current location alongside the railway line.

[7] Severalfur trading posts may have operated at various times in the area, but they are poorly documented.

The explosion is suspected to have been caused by a backhoe that snagged and sheared a natural gas riser from the main line.

Other industries in the area include: agriculture, tourism, canola oil processing, honey production, forestry, and commercialization of second-generation biofuels.

This resort community has become a destination for fishing, camping, boating, golfing, hunting, and outdoor recreation.