Huachuca City grew up right outside the north gate of Fort Huachuca Military Reservation on the edge of the Huachuca Mountains. Originally, Fort Huachuca was founded to counter the threat posed by the Chiricahua Apache. After Geronimo surrendered in 1886, the Indian threat was over but the fort was kept open because of its strategic location near the border with Mexico.

Fort Huachuca was home to the Buffalo Soldiers of the 10th Cavalry Regiment for 20 years and was used as a forward logistics and supply base for the unsuccessful 1916-1917 Mexican Punitive Expedition (when the US Government sent General John J. Pershing into Mexico after General Francisco "Pancho" Villa attacked the town of Columbus, New Mexico). The fort was used as a base and training grounds for several African-American infantry units over the years but was essentially closed in the late 1940's.

Then Fort Huachuca opened for business again in 1954 with the arrival of the Signal Corps and the Electronics Proving Ground. Since then, Fort Huachuca has grown in importance until now it is headquarters for the US Army Network Enterprise Technology Command and 9th Army Signal Command. In 1954, the settlement started to grow and went through several names (Campstone Station, Sunset City, Huachuca Vista) before 1958 when the name "Huachuca City" was finally chosen for the incorporation papers.

Today, Fort Huachuca is still the major employer in this area but retirees are moving in and tourism has become a big draw and driving engine for the local economy.