Jackson is located in Jackson Hole, "hole" being a trapper's term for valley. The community , the valley, and the lake were all named for mountain man, trapper and trader, David Jackson, who explored the area in 1827.

The Indians who hunted in this part of Wyoming were the Shoshones. They were also given the name "Snake" by the white men who explored the area, because in the sign language of the Indians, the sign for the Shoshones was a snakelike hand motion.

Jackson was established in 1897. Some of the white clapboard houses were brought over the Teton Pass west of town, piece by piece, in horsedrawn wagons. In the early 1900s, few people called Jackson home. "The Hole" attracted trappers, outlaws, remittance men and confirmed bachelors. It did not appeal to women: the tough, isolated valley was an inhospitable place to raise a family.

Two years after being platted in 1901, the "town" was a ragtag collection of just six buildings and far-flung ranches. Then the westward homesteading push hit. By 1907, more than 30 businesses and homes grew around the Town Square. Many of them are still standing today.

Jackson Hole is also the birthplace of the western story. The valley and its legends inspired Owen Wister to write The Virginian, and it also served as the setting for the movies Heaven's Gate and Shane. A number of well-known artists make their homes in Jackson, and local artists exhibit their work at local galleries and art fairs. Several celebrities also make their home here, including actor Harrison Ford, former Secretary of the Interior James Watts, attorney Gerald Spence (of Karen Silkwood and Imelda Marcos fame or infamy), former Wyoming governor Clifford Hansen, Yvon Chouinard (mountaineer and founder of Patagonia), along with members of the Rockefeller family.

The Town Square is marked on all corners by the well-known Elkhorn Arches, collected from the National Elk Refuge. In the spring when the elk shed their antlers, which the area Boy Scouts retrieve and after the arches are repaired from any damage sustained during the winter, later auction off (at a considerable profit). Bidders include those from the Far East, who grind the antlers into powder form, purporting it to be an aphrodisiac. In the center is a statue of a bucking bronc rider, Jackson's war memorial. Each evening except Sunday there is an old-time shoot out at 6:30.

Million Dollar Cowboy Bar (west side of the town square) with its well-worn saddle seats, burled pine, and painted murals, is a classic local landmark. In the beginning it was a two-bit hamburger joint that served beer on the side.

Joe Ruby purchased the frame building in the early 1920s and renamed it JR's Saloon. It was pretty wild in those days. Stories have it that people would be eating in Moore's Cafe (now the Cadillac Grille) and bullets would blast through the north wall of the saloon into the restaurant. One such gun-slinging incident led to Ruby's hasty departure. A man was shot over a card game, and while no murder charges were filed, Ruby was given 24 hours to get out of town. Law and order was a group effort back then.

Ruby sold the saloon to Ben Goe, a local rancher who renamed it the Cowboy Bar. Goe hired Hack Kranenburg to remodel the interior, and added the accouterments of the gambling trade. Not to say that gambling was ever legal in Wyoming; when federal revenuers arrived in town there was no evidence of betting table or slots in sight. The owners had been forewarned of their approach by mirror signals from the top of Teton Pass.

Through the years, the watering hole has changed ownership and been remodeled many times. It was also featured in the Clint Eastwood movie Any Which Way You Can.

J.J.'s Silver Dollar Bar and Grill (50 N. Glenwood St.) has 2,032 (count 'em) silver dollars embedded into the bartop.