As the Union Pacific railroad laid tracks through Merrick County, the town sprang up near the tracks just a few miles from the original "Lone Tree". On July 1, 1875, the town's name was officially changed to Central City -- to depict an image that would bring new settlers to the community. Central City was eventually designated the county seat and grew to be the largest town in Merrick County.

The famous Lincoln Highway, also called "Main Street Across America" and now known as U.S. Highway 30, passes through the heart of Central City. The highway forms the city's main street and was the first transcontinental automobile route traversing the entire United States from New York to San Francisco.

The Mormon Trail, which passes by the community, was first used by the Mormons in 1846 as they journeyed to Utah, and later, thousands used it as they made their way westward.