Jackson Hole is named after Davy Jackson, an early fur trapper that frequented the valley between the Teton Mountains and the Gros Ventre Range. At the time, a valley surrounded by mountains was referred to by mountain men as a "hole". The place became known as "Jackson's Hole", though another trapper named John Colter is believed to be the first white man to actually visit the valley, in 1807.

Six major trails used by trappers brought mountain men through Jackson Hole. They gathered here and held a yearly summer rendezvous during the early 1800s, where they traded goods, held various competitions of skill, and likely introduced some of the rowdy, celebratory atmosphere Jackson Hole would become famous for. Changes in fashion led to the decline of the fur trade in the late 1800s, and the valley became less frequented by white men. However, the government-sponsored Hayden Expedition arrived in 1871, and the pictures they brought back from Yellowstone helped prompt the formation of Yellowstone National Park, the nation's first, in 1872. Wyoming officially became a State in 1890.

Humans were visiting the valley long before Colter or Jackson arrived. It is thought that hunter-gatherers were present as early as 12,000 years ago. Individual tribes have never claimed Jackson Hole as their own, but various Native American tribes from the region came to the valley during summer months. Harsh winters kept people from living here year-round until recent times.

The first settlers arrived in Jackson Hole in 1883, and within the next decade, small villages appeared. Kelly, Wilson and Moran, Wyoming were the first of these. The town of Jackson was created in 1897 at the confluence of Cache and Flat Creek. This was convenient trade location for many of the local ranchers at the time. Early buildings included a bank, stores, and a church.

The cattle industry in Jackson Hole began to compete with local game animals for food / hay. Congress initiated a feed program for the Jackson Hole elk herd and eventually purchased 24,600 acres just north outside of town to form the National Elk Refuge as a winter feeding ground for the elk. Over 7,000 elk winter on the National Elk Refuge. Visitors can view the herd up close on sleigh rides provided within the refuge.

With abundant big game throughout the area, Jackson Hole became famous for hunting. Ranchers developed lodging and guide services. These "dude ranches" offered fly fishing, hunting and horseback riding.

Tourism eventually became the main economic influence in Jackson Hole. Adding to the area's travel appeal, the Grand Tetons were designated as a national monument in 1929. In 1950, Congress created Grand Teton National Park.

Of special note is that a Jackson Town Council, made up entirely of women, was elected in 1920, drawing attention to Wyoming as the "Equality State".

Numerous movies have been made in Jackson Hole,  including "Shane", "Spencer's Mountain", and "The Unexpected Mrs. Polifax". The Teton Mountains have appeared in advertisements of all sorts, and are probably the most recognizable peaks in the U.S.

These days, Jackson Hole is a popular year-round vacation destination. Outdoor mountain activities of every sort can be enjoyed, from skiing, snowboarding, and snowmobiling to fly fishing, whitewater rafting, and horseback riding. Jackson Hole retains much of it's Old West character while offering all the amenities one expects to find at a world-class resort area. Cowboys can be seen alongside snowboarders and pampered shoppers.