Vaughn was built as a railroad town at the junction between the Atchison, Topeka & Santa Fe and Southern Pacific Railroads. Vaughn was established as a division point in 1907. Construction of a roundhouse, Harvey House hotel and a two-story depot were completed shortly thereafter. The town was incorporated in 1919 and the 1920 census put the town's population at 888. Today, Vaughn is the crossover point of US Highways 60 and 285 and is located about halfway between Santa Fe (to the north) and Roswell (to the south).