It is not known how Richmond received its name, but some believe it was in honor of LDS Church apostle Charles C. Rich. Others think that the name came from the deep rich mound of soil located on the alluvial fan made by the waters coming from Cherry Creek and City Creek; other believe that it was named after Richmond, Virginia, by "homesick" southern settlers. Richmond was incorporated as a city on 26 February 1868.

Among Richmond's early industries were a shingle mill, gristmill, sawmill, and the Richmond Co-operative Mercantile Store, built in 1866. Cache Valley is a great dairy and cattle area, and Richmond boasted of having the first creamery in the area. In 1896 the Utah Plow Factory was started; it produced plows, bobsleds, iron harrows, and cultivators. Other early businesses included two livery stables, a furniture store, and a tin shop. In the 1870s and 1880s Richmond was second to Logan in manufacturing in Cache County. The Sego Milk Plant began operation in 1904 and became a thriving industry for the area. Before its closure it was owned by Western General Dairies, Inc. Today the major industries in Richmond are Pepperidge Farms, Lower Food, and Heart to Heart (which manufactures low-fat yogurt products).