Paxton, Nebraska, originally known as Alkali, owes its early existence to the construction of the first Transcontinental Railroad in the late 1860s.

This small but resilient community began as a simple siding along the Union Pacific Railroad, complete with a telegraph station, water tower, and depot.

William A. Paxton, a prominent Omaha rancher and businessman, acquired significant land in the area, alongside other figures like John Bratt and Morrell Keith.

Pioneers like Ann LeDioyt, who filed the first homestead claim, and the Lawler family, who brought cattle to the area, established the foundations of a thriving agricultural community.

The village of Paxton incorporated in 1885 and began expanding its infrastructure with the construction of bridges, a school, and a growing array of businesses.

Churches, such as Methodist (1886) and Catholic (1887), sprang up, and The Globe Hotel, run by the Stafford family, became a hub for railroad workers and visitors.

The town's economy received a boost in the early 20th century with the construction of the Lincoln Highway, the first transcontinental road in the United States, which passed through Paxton.

Paxton also embraced modernity with a municipal light plant, though its initial limitations (shutting off at 10 p.m.) sparked frustration among residents.

The town also gained cultural significance with the opening of Ole's Tavern in 1933, a business that became a lasting community centerpiece.

Its history reflects the indomitable spirit of the American West, shaped by pioneers, ranchers, and entrepreneurs who turned a humble railroad siding into a vibrant town.