[7][8] The original name of the city was Duzzap (Persian: Duzdab, meaning "Water Stolen"), which it had received due to the abrupt floods into the valley.

[10] During World War I it became the westernmost terminal of the Zahedan railway station, which reached as far as Quetta in the northern part of what was then British Baluchistan.

[11] The city was the site of a deadly crackdown in October 2022, with dozens citizens killed by pro-governmental forces.

[14][15] The next day, there were widespread protests in the city; Revolutionary Guards and other armed forces fired on protestors.

[14] While the surrounding area boasts numerous ancient sites, Zahedan itself primarily developed in the 20th century.

Beyond this, west, a standard gauge line was completed from Zahedan to Kerman linking the city with the rest of the Iranian rail network.

In May 2016, during Indian Prime Minister Narendra Modi's trip to Iran, agreement was signed to develop two terminals and five berths at Port of Chabahar and to build a new railway between Chabahar and Zahedan, as part of North–South Transport Corridor, by Indian Railways's public sector unit Ircon International.

[25] In April 2008 the 70 billion IRR (about 2.5 million USD) Zahedan Stadium was built with a seating capacity of 15,000 people.