[2] The town is named for a blue hole, which is found near the back of the settlement in the pine forest.

During the Wilson city era of logging operations, the railroad passed by the blue hole to fill up on water.

Spring city was started in 1959, to house Bahamian staff for the Ownes Illinois pulpwood operation, at Snake Cay.

The settlement began to decline after the pulpwood and sugar operations shut down, however it was still home to hundreds of people.

Today, due to rebuilding efforts and resettlement, Spring city has made a comeback.