The Kansas Pacific Railroad, later the Union Pacific Railroad, had laid tracks to Russell County in June of 1867. The town of Dorrance was laid out in 1880, and it was named after the railroad superintendent.
The post office was established on July 9, 1883, with the name spelled Dorrence. It was changed later in the year to Dorrance.
There is a strong religious heritage in the town and its area – the Methodist Church was established in February 1879, and the Catholic Church was established in December 1902. The Catholics had been attending services at the Wilson Lutheran Church before they got their own church.
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