In 1825, the village was founded by William Mills and approximately 100 families, followers of Robert Owen, who wanted to emulate the utopian community at New Harmony, Indiana.

[citation needed] The village was named after nearby natural springs with waters high in iron content.

[citation needed] The completion of the Little Miami Railroad in 1846 brought increased commerce, inhabitants, and tourism to this area of Greene County.

[4] Antioch College was founded in 1850 by the Christian Connection, and began operating in 1853 with the distinguished scholar Horace Mann as its first president.

[citation needed] In 1920, Arthur E. Morgan became president of Antioch College; he was known for his innovations and implemented a much-imitated work-study program for students.

An engineer by training, Morgan left Antioch to become head of the Tennessee Valley Authority during President Franklin D. Roosevelt's administration.

Upon his return to Yellow Springs, Morgan was a key leader of Quaker intentional community developments in Ohio and North Carolina.

Gaunt bequeathed to the village a large piece of land on its western side, requesting that the rent be used to buy flour for the "poor and worthy widows" of Yellow Springs.

Although the land was used to create Gaunt Park, and thus does not generate rent, the village expanded the bequest to include sugar.

It still delivers flour and sugar to the village's widows at Christmas time, a tradition that generates annual media coverage.

[11] During the Red Scare of the 1950s, Yellow Springs and Antioch College came under scrutiny for alleged sympathies of faculty and students to the Communist Party, due to many locals' support of left-wing politics.

[13] Villagers have retained a progressive cast in their politics, attracting new residents with similar ideas and establishing a unique sociopolitical demographic element in a primarily conservative region of the state.

[9][14] In 1979, Yellow Springs held the distinction of being the smallest municipality to pass an ordinance prohibiting discrimination based on sexual orientation.

[18] The village takes its name from a nearby natural spring whose waters are rich in iron, leaving a yellowish-orange coloring on the rocks.

[30] However, Antioch University's administration, as well as its online division and Graduate School of Leadership & Change, remain headquartered in Yellow Springs.