The city was founded in August 1864 by John M. Bozeman and Daniel Rouse. John Bozeman blazed the famous route known as the Bozeman Trail, which connected the Oregon Trail to the gold mines in Virginia City. The settlement emerged as a strategic point to support travellers and miners, and received its name in honour of its founder that very year.
Bozeman's development was defined by a fortunate combination of geographical and economic advantages. Thanks to its location in the fertile Gallatin Valley, the city became not just a transit point, but an important centre for food production. As a trading hub at a crossroads, it supplied prospectors and settlers with provisions, and Bozeman's selection as the administrative centre of Gallatin County in 1867 finally solidified its influence in the region.
Unlike many "boomtowns" that sprang up during the gold rush, Bozeman was built from the start as a permanent community with a sustainable economy. The foundation of its prosperity was agriculture and cattle ranching, which ensured the city's stability even after the gold veins in neighbouring areas were exhausted. A crucial cultural event was the founding in 1893 of the Agricultural College of the State of Montana (now Montana State University), which secured the city's status as an educational centre.